A Tutorial On Managed Buy/Sell Private Placement Programs: Chapter 7
By Michael Weiner
PROJECTS
The purpose of this type of trading is to finance projects, not generate tremendous profits for the client. These may be for-profit or non-profit and can be funded as a result of this trading.
Since this type of trading generates such large amounts of money on the market, measures must be taken to keep the inflation low. One way to do this is to adjust the interest rates, but this usually has little or no effect. A better way to minimize inflation is to let some of the profit be used for different projects that need funding, such as rebuilding infrastructure in regions of the world that have experienced catastrophes or war.
PROCESS SYNTHESIS
The complete process involving the issuing of debt-notes, the arbitrage transactions, the programs, and the projects is a result of combined market forces. Banks have a method of increasing their revenues and profits, clients are able to finance different ventures, and borrowers are able to access loan funds. There is a supply and demand for such instruments, and as long as the supply and demand exists then also this kind of trading will exist.
About the Author
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| Michael Weiner, PreConstruction Catalysts Inc
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