Thursday, October 1, 2009

Do the Rich get Richer? Regulation 144(a)

No long rant here but think about this. Have you ever wanted to make a lot of money? Probably. (Some of you may have just wanted someone to give you a lot of money, you can stop reading now.) .... If you've ever wanted to make a lot of money you may have tried investing in stocks on normal exchange markets the NYSE, NASDAQ, S&P ect. Those markets are tightly regulated by the SEC, even though some Big Fish have found their way out of the net lately (Madoff, Enron, ect). But the disclosure laws for an IPO (initial public offering) are vast, and carry strict liability for the bold corporation that would violate them. But what if I told you, "forget these highly regulated markets you can trade through the back door in other countries, where you can make enormous amounts of money without the SEC telling you what you can and can't do." Well we would all jump at this chance. WAIT one more thing, you can't you're not a QuIB, that is you're not a Qualified Institutional Buyer. You may say, well, how do I become a QuIB? Well you need a networth of some 25 million dollars in order to play in this game. Do the rich get richer? Yep, they do.

Here's another Definition for QuIB

For those of you who thought by SEC I meant that great institution effectionately known as the South Eastern Conference which governs the Best 12 Southern Universities and is home to the nation's best Football Universities: well that's the wrong SEC. Mike Slive and The South Eastern Conference yeilds enormous power -- they censored both Coach Meyer and Kiffin -- its power pretty much stops at the Mason-Dixon line. Unless you're unfortunate enough to play one of those 12 schools in a National Championship game, then the SEC dominance extends to you as well.

A's M.

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