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Educational Post: "Funding" >

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trader53 Member Level  Wednesday, 05/02/12 11:55:20 AM
Re: trader53 post# 818
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Educational Post: "Funding" >

Funding

Ever wonder how a Company with NO cash,
can pay for a "Promotion" ?

One of the easiest ways,
for a start-up company that trades on the OTC,
to gain the attention it wants,
is to get "Promoted".

In many cases,
the compensation to the Promoter is "in shares".

To be more precise,
"restricted shares" by the company,
and "free trading shares" from an "undisclosed third party" .

In the start-up stage,
the "Promotion" will give the company some publicity,
however, it may not lead to the desired results,
due to the "share-based compensation" .

That's not necessarily a bad decision on the part of the company's management.
They just may not have the option to pay in cash.

The thing about "promotions",
is that they tend to work better,
when "paid with cash".




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