Share of profit from shared investment? - Aussie Stock Forums

# Thread: Share of profit from shared investment?

1. ## Share of profit from shared investment?

Hi guys,

If me and a friend want to put in money together to put in a company how would we work out our share on the possible gain?

Me: \$1000
Friend: \$2000

Total investment: \$3000

Price goes up and we see a 50% return: Profit \$1500

How would I work out how much I get of that profit and how much my friend gets?

2. ## Re: Share of profit from shared investment?

Really??

1/3 = 0.3333
0.3333 * 1500 = 500

3. ## Re: Share of profit from shared investment?

Originally Posted by viciam
Hi guys,

If me and a friend want to put in money together to put in a company how would we work out our share on the possible gain?

Me: \$1000
Friend: \$2000

Total investment: \$3000

Price goes up and we see a 50% return: Profit \$1500

How would I work out how much I get of that profit and how much my friend gets?

Id be working out how your going to handle loss more than profit.
Its something you need to work out between you--in writing and before you go into it.
Same with losses.

A shelf Company to set up would be \$1-1.5K.
Then you'd have to set up the tax side of it.

For \$3k Id be handling it as individuals.

- - - Updated - - -

Originally Posted by prawn_86
Really??

1/3 = 0.3333
0.3333 * 1500 = 500
I think he's alluding to his expertise being seen as an advantage.
That---is negotiable.

4. ## Re: Share of profit from shared investment?

Originally Posted by viciam
Hi guys,

If me and a friend want to put in money together to put in a company how would we work out our share on the possible gain?

Me: \$1000
Friend: \$2000

Total investment: \$3000

Price goes up and we see a 50% return: Profit \$1500

How would I work out how much I get of that profit and how much my friend gets?

Can't work out simple profit sharing maths - and you want to trade
With 3k? You end up paying it all in fee

5. ## Re: Share of profit from shared investment?

Originally Posted by viciam
... How would I work out how much I get of that profit and how much my friend gets?

If my friend could not get his idea off the ground with \$2k, I would claim to have leverage over him.
I would be demanding the first three years profit.

He would probably retaliate by hiring a creative accountant to ensure that first three years were not profitable.

It's not a simple mathematical question!?

6. ## Re: Share of profit from shared investment?

Originally Posted by burglar
If my friend could not get his idea off the ground with \$2k, I would claim to have leverage over him.
I would be demanding the first three years profit.

He would probably retaliate by hiring a creative accountant to ensure that first three years were not profitable.

It's not a simple mathematical question!?
I think it was a more simplistic question and people are reading too much into it.

I may be misinterpreting but I assumed that he just means put the 3 grand into a company, as in purchase shares in a listed company not actually start his own company.

If this is correct then refer back to Prawn's response.