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Re: Traderfan post# 55552

Tuesday, 08/12/2008 2:48:42 PM

Tuesday, August 12, 2008 2:48:42 PM

Post# of 99130
"This whole scenario you described could be done much easier. Just tell the financier to give some money directly to SPZI. Why make it so difficult?"

The way I see it, it's better for a financier to purchase the stocks rather than give money directly to the company wanting the money. This way, if the company can't repay the financier according to the terms, the financier could dump the shares into the market and get their money back that way. It gives the financier more security of getting some money back.

Does that sound logical?

Just my opinion.