What is a private placement program?

Question

I have been introduced to a private placement program, but I do not know what it is, and how it can provide a good return on our investment. In the program, I be using a substantial amount of cash loan from some banks, and the cash supposedly can provide 100% return in one year. How true it is?

Answer 1

Hi,

I just wondering how you could be introduced to PPP if you don't know what is it. You should be searching yourself for PPP provider and nobody could solicitate you.

You should note following:
1. Funds should remain under full your (investor) control during all PPP period (usually 52 weeks).
2. Funds cannot be placed to escrow or joint account.
3. No upfront fees.

Maybe this would help you to understand private placement programs

Usually, a trading program is nothing other than a pre-arranged buy/sell transaction of discounted banking instruments made as an arbitrage transaction. Virtually, an investor with large amount of funds (on the level of 100M-500M USD) could arrange for his own program by implementing for himself the buy/sell transaction; but in this case he needs to gain control of the whole process making contact with the Provider banks for the bank instruments and at the same time for the exit buyers. This is not a simple task at all considering that there are many FED restrictions to be passed and at the same time it is very difficult to get the strong necessary connections with the related parties (the issuing banks/providers for the bank instruments and the exit-buyers).

For an investor it is much simpler (and usually more profitable) to enter a program where the Trader with his Trading Group has already everything in place (the issuing banks, the exit buyers, the contracts ready for the arbitrage transaction, the line of credit with the trading banks, all of the necessary guarantees/safety for the investor, etc.) and the investor needs only to agree with the contract proposed by the Trader forgetting about .any other underlying problem.

Another advantage for the client is that he can enter a program with a substantially lower amount of money against the case to proceed by himself because he will take indirectly advantage of the line of credit of the Trading Group.

The involved investors (the Program's Investors) are not the end-buyers in the chain, but the real end-buyers are financially strong companies who are looking for a long term and safe investment, like pension funds, trusts, insurance companies, etc. And because they are needed as end-buyers they are not permitted to participate "in-between" as investors. The investor who participates in a Private Placement Investment Program is just an actor in the picture amongst many other actors (bank instruments issuing banks as top world banks, exit-buyers as pension-funds/insurance, etc., trading groups as traders/commitment holders, intermediaries/brokers) who gets the advantage to benefit from this trading. The investor usually does not see most of the actors involved in the process because he will deal with brokers, Trading Groups / Traders and Trading Banks only.

The real core of the trading and its safety is due to the fact that they arrange the buy-sell transactions as arbitrage, which means that the instruments will be bought and sold at the same time with pre-defined prices, and that a chain of buyers and sellers are contracted, incl. the exit-¬buyers who often are institutions, other banks, insurance companies, big companies, or other wealthy individuals. The issued instruments are never sold directly to the exit-buyer, but to a chain of up to 3 - 7 or 50 investors. The involved banks cannot for obvious reasons directly participate in this as in-between buyers and sellers, but they are still profiting from it indirectly, because they are lending out their money (with interest) to the trader, or to the investor as a line of credit. This is the leverage. Further the banks profit from the commissions involved in each buy/sell transaction of debt bank instruments in the trading circle. Now, the investor's principal doesn't have to be used for the transactions, but it's only reserved as a compensating balance ("mirrored") against this credit line. And this credit line is then used to back up the arbitrage buy-sell transactions. Now, since the trading is done as arbitrage, the money (the credit line) doesn't have to be used, but it must still be there available to back up each and every buy-sell transactions. Such programs never fail because they don't start before all actors have been contracted, and each actor knows what role to play, and how they will profit from the transactions. This is the real type of PPO's!

A trader that is able to do a leverage is able to control a credit of typically 10 to 20 times that of the principal, but even though he's in control of that money he's not able to spend the money. He only needs to show that he has the money and that he's in control of the money, and that the money is not used somewhere else at the time of the buy-sell transaction. The money is never spent. And the reason is that the trading is done as arbitrage transactions. Let me take an example:

Let's say that you're offered the chance to buy a car for $30K and that you also find another buyer that is willing to buy it from you for $35K. If the buy-sell transactions are done at the same time, then you don't have to spend $30K and then wait to earn the $35K since it can be done at the same time you cash in $5K in profit. However, you must still have that $30K and prove that you're in control of it.

Arbitrage transactions with discounted bank instruments are done in a similar way. The involved traders never spend the money, but they must be in control of it. And the investor's principal is reserved directly for this, or indirectly in order for the trader to leverage (= he's using a credit line that is 10 to 20 times of the principal, and is thereby able to trade with 10 - 20 times as much money).

Confusion is rife because most seem to believe that the money must be spent. And even though this is the traditional way of trading - buy low and sell high, and also the common way to trade on the open market for securities and bank instruments, it's possible to set up arbitrage transactions if there's a chain of contracted buyers.

You can also realize now why in these' Private Placement Programs the investor funds are always safe without any trading risk or whatever other risk except for the normal bank system risk (a bank can still virtually go in bankrupt!!).


If you have any questions about PPP please don't hesitate and contact me via PM or e-mail (press on my name)

Answer 2

Private Placement Program

Answer 3

1

Answer 4

If you do not know what you are investing in, pls do not invest. Moreover, you are going to take a cash loan to invest. How much interest will you be paying? If your investment failed, then you are going to be in deep and big trouble.

On the other hand, the private placement program can be true which can give you a very good return.

So the verdict is find out what's the private placement program. What's your risk? How will you be protected? Is the company and the person who introduced you to the program trustworthy?

Do your due diligence to find out more and reap the rewards after.

Cheers.

Answer 5

For the best answers, search on this site https://smarturl.im/aD1dd

Yes...but. As with Hedge funds, venture capital, and private equity...don't go there...even if you have $10mm. In truth. the very best are the only ones worth investing in and you will not likely be invited to the table without serious money ($25mm) or a connection to serious money (bundling investments in bunches of $25mm to $1b) Again, to be blunt, "the pack" of money managers in these categories are not any better than the average mutual fund manager and they charge a hell of a lot more. Even the average rich person will do better to invest in mutual funds or separate accounts. Only the very best (those who show up in the top ten % for decades), could be said to actually increase return while lowering risk overall (diversification).

Answer 6

I've been trading the market for just a few months. My cousin actually told me about Nathan and his website and I signed up immediately after. http://penny-stock.keysolve.net
I'm not someone who has a lot of time to be researching for ideas because I work many hours.
Nathan has made it incredibly easy for me to make money in the market. His reports are easy to read and follow.
I've tracked most of the stock ideas that I've received in my e-mail from him and MANY have seen some nice gains after his announcements. I've made a nice profit (55% return on my investment on one, and 112% on the other!) on a couple of suggestions he's given and plan to start trading his ideas a lot more.

I definitely recommend subscribing to PennyStock Egghead. Very good research, quality stocks.
Check here for more info: http://penny-stock.keysolve.net

Answer 7

Private Placement Programs, are what they are Private. Always make sure you do your research before going into one, and usually you are invited into these types of programs. If you want more information please contact me at my email..Thanks and hope this helps

Answer 8

In binary options you will have the possibility to predict the movement of various assets such as stocks, currency pairs, commodities and indices. Learn how you can make money trading binary options https://tinyurl.im/aH4w1 An option has only two outcomes (hence the name "binary" options). This is because the value of an asset can only go up or down during a given time frame. Your task will be to predict if the value of an asset with either go up or down during a certain amount of time.

Answer 9

2

Answer 10

If you want to earn money with binary trading and you aren't a big expert you definitely need some kind of support. I use a software called "autobinary signals" and I earning good money with it. Here you can find all the details and also some video proofs: http://www.goobypls.com/r/rd.asp?gid=551
Hope it helps.

Answer 11

Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.

http://investing.sitesled.com/

I am sure that you can get your answers in this website.

Good Luck and Best Wishes!