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Re: stockhunter-ny post# 30694

Wednesday, 08/16/2017 10:46:59 AM

Wednesday, August 16, 2017 10:46:59 AM

Post# of 30846
https://www.google.ca/amp/s/www.theglobeandmail.com/report-on-business/a-tale-of-toxicity-the-real-culprit-in-nortels-collapse/article7379114/%3fservice=amp

Nothing, but my point is when a company sells it self to the public it will finance the purchase for the aquiring company.

The collateral is supplied by the seller to the buyers bank. No different then you buying a house except the seller holds the collateral not the bank. This allows a much cheaper rate going back to the bank with portions going to the seller for holding the collateral.

Now the collateral interest is restricted from trade as those shares are lent to the purchaser for a price. The purchaser then sells them on the open market in hopes of recovering them. If he dosn't well his plan is doomed but the shares purchased and the holders still hold a debt too the seller.

This debt is gradually paid back by deferring taxs where now the credit is transferred from the seller to the government.

Best of luck my friend. Remember all public securities are and is public credit from represented interest of the public managed by the government.

The shares are short sold for the administration cost of raising the capital not the value of the collateral that is represented in the retained earnings.
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