Instant Equity w/ Lack of Control Discount

There's the word that every investor needs to write down. Discounting. We're not buying it at a discount, we're converting at a discount. Now, there are some very well settled established legal parameters on these conversions at a discount. The first is that there is a discount for the lack of control. So we see a discount ratio. Well, that means that if we take that discount and we apply it to the hundred thousand dollars we've now discounted, counted that hundred thousand dollars down to say, $70,000, because that's what an independent, reasonable third party person might pay for that position, given the lack of control.