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Re: gdb81 post# 115777

Friday, 10/27/2006 10:35:10 AM

Friday, October 27, 2006 10:35:10 AM

Post# of 169298
gdb81, RPH has not as yet hypothecated any bonds. For your info he was just giving an example that how much he can get against the bonds. Perhaps you do not understand the fundamental purpose of a holding company. Holding company holds the assets and then use those assets to secure funds to finance the projects. This process is called Hypothefication. For corporations being able to secure funds means financial institutions have confidance in the viability of those companies. Yes all loans are liability but numerous companies are not able to launch themselves b/c they are not able to impress the financial institutions. But once f/i's give u thumb up, it is a work half done.

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