Green Energy Enterprises Inc. (GYOG)

[eddy2]

If a company sells its accounts receivables that one has to remember the receivables belonged to another group. That group can ask the world for that asset but they are required to display the risk in there asking price.


The risks are shelf depreciation, depreciation if a retailer sells the product but are required to replace the collateral should this take place.


One way this is done is the buying of a derivative that represents this value or better to sell a derivative with the money.


A lot of times these practices are done off shore in a wholesale manufacturing process along with maybe a retail component to it as long as it is controlled inside outside very little credit is ever granted without a bank being involved.