Private Placement Programs, Blocked Funds, Administrative Holds and the Tooth Fairy

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MB Assets has published another detailed white paper entitled "Private Placement Programs, Blocked Funds, Administrative Holds and the Tooth Fairy", as a highly informative dedication to sincere high-yield alternative investment opportunity seekers who are simply fed up with the lies and deception cast over the entire Private Placement Program space by ill-advised non-principal parties.

MB Assets has published another detailed white paper entitled "Private Placement Programs, Blocked Funds, Administrative Holds and the Tooth Fairy", as a highly informative dedication to sincere high-yield alternative investment opportunity seekers who are simply fed up with the lies and deception cast over the entire Private Placement Program space by ill-advised non-principal parties.

Private Placement Programs, Blocked Funds, Administrative Holds and the Tooth Fairy;

The Tooth Fairy is a wonderful myth of childhood. Children would place their tooth under their pillow and wake up excitedly the following morning to find a shiny coin under their pillow; this is a childhood joy many of us experienced. Alas, the sad reality is there is no Tooth Fairy; the money came from mom and pop’s pockets. There is no free money in life.

Blocked funds and administrative hold reside in the same mythical village as the Tooth Fairy, Santa and the Easter Bunny. Let’s imagine someone wishes to buy a rare automobile, and they are lucky enough find a 1967 Ferrari P4, they are indeed very fortunate, and the seller tells them there are two other wealthy potential buyers. He wants a deposit of 10 percent to hold the car for them. They tell him that’s not a problem; I have been searching worldwide for years for such a car here is my check. The dealer deposits your check in his account only to be told by his bank it is not good funds. What! It was written on funds in a blocked account. But not a problem for the dealer, he simply sells the car to one of the other buyers with real money. The blocked funds could not facilitate a transaction and the P4 belongs to a buyer operating in the real world.

The trading of real financial instruments in Private Placement Memorandums, such as CMO’s, Treasury Bonds, Securities, MTN’s, CD’s, Commodities and Currencies, is no different than the example of the rare car purchase. Sellers of securities want to be paid in cash. Platform trading relies on the ebb and flow of billions of dollars every day. Trading platforms also rely on heavy utilization of leverage to generate high returns. Leverage in turn is dependent on margin utilization. To see how margin works let’s take an example most people are familiar with, buying real estate.

If someone buys a house for $100,000 and pays a down payment, let’s say 10 %, they pay $10,000 cash and a bank lends the balance. The purchaser are controlling a $100,000 investment with $10, 000. This is leverage. They have significantly leveraged their $10,000. In fact the leverage is 10 to 1 or 10x. If the house was to double in price, they have made a $100,000 on their investment. Of course they have to deduct expenses, although still a nice return. The $10,000 they put down on the house was a cash payment. Think about it. "When have you made a down payment, paid a utility bill, paid taxes or paid for anything with blocked funds?" To read the full article, see the attached PDF or visit http://www.mbassets.com.

This communication is not to be construed as an offer to sell or the solicitation of an offer to purchase any security or invest in a Private Placement Program or Trade Platform. Any such offer or solicitation can be made only by means of an exempt disclosure document and trade platform offering memorandum (which contain a detailed description of risk factors). The offering documents and exempt disclosure documents can only be provided by a licensed and regulated Private Placement Program or Trade Platform to a qualified eligible person or entity. Participation in Private Placement Programs and Trade Platforms is only available to qualified eligible persons. Past performance is not a guarantee of future returns.

The author, Dane Brigadier and MB Asset Holdings, LLC ("MB Assets") are not Certified Financial Advisors, Registered Securities Brokers, Broker/Dealers and/or Stock Brokers. MB Assets is a business consultancy firm which provides advice to private individuals on or about business matters.

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Dane Brigadier
MB Assets
901-552-5700 ext. 1
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