$SoFi Technologies (SOFI.US)$ Noto pre-paid contract explana...

Noto pre-paid contract explanation :

Imagine you have 1000 apples and you want to sell them all. Instead of selling them in the market which will cause a downside in price, you decide to make an agreement with someone. Let's name this person - John and the cost of 1 apple is $2 for simplicity sake. John will pay you $2000 for the apple today and you promise to send it to him 1 year later.

After 1 year, if the price of apple goes up to $4 , you only need to send him 2000/4=500 apple.

After 1 year, if the price of apple goes down to $1, you need to send him 2000/1=2000 apple.

This strategy is used when you do not want your selling of apple to affect the market price of apple and you bet that the apple price will goes up so that you will send John a lower number of apple in the future.

Noto never sell his stock and if he do, he sold it without affecting the share price.