Profit By Rumours

In the movie, Broker, I saw the following, which I did not know before.

Industrialist (to Minister): Sir, we need a rumour that your ministry is stopping the subsidy given to our company.

Minister: If we stop the subsidy, it's loss to your company!

Then, Broker stops the minister

Broker: Rs.500 Crore

Industrialist: Excuse me

Broker: What you heard is true.

Industrialist: Why should I give you that much?

Broker: Now your company share value is Rs.250. In that your share is 25%. Remaining 75% is with the directors of your company and the shareholders. They are not agreeing with you for anything that you want to do. That means, you need 51% stake compulsorily in your company. You don't have the capacity to buy these shares at this rate. This rumour will help you to bring down the share value from Rs.250 to Rs.30. That's why today you came here for this rumour. If this rumour is spread, then you'll get a profit of Rs.2500 Crore. In that, our share is Rs.500 Crore.

Minister: Its just only 20%, quite common.

Industrialist: But a small ...

Broker: I understood what you want. Exactly after one month, after you buy those shares, Minister personally announces that this is a rumour. Is it okay?