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Re: la izzy post# 72758

Thursday, 09/17/2009 6:54:37 PM

Thursday, September 17, 2009 6:54:37 PM

Post# of 118239
la izzy, how are things in the Great State of Louisiana?

One thing is for certain. A broker/dealer is using Arca Edge to buy shares for a client.

on the bad side: can't think of a bad side to somebody buying the stock

on the good side: IMO it's possible it could be a "private placement trade".

Don't rightly know

Is that plain enough? lol

Mo' fas'er and fas'er De 'gator dey came !!

GL

Johnny



Investors' increasing requirement that companies be more mature before going public has led
companies to consider the private placement market for funding to tide them over.
"What used to be the IPO point in the 1990s, when a company needed a $200 to $500 million
market cap, is now $1 billion," said Mona DeFrawi, chief executive of InsideVenture, a Silicon
Valley-based service that will begin matching private investors and later-stage pre-IPO
companies this winter.
Paradoxically, the 144a market is not hospitable to the small and mid-sized cap companies
that have historically fed the IPO pipeline, Weild said.
"It works well only for larger companies because smaller transactions don't offer the same
liquidity," he said.
While Portal Alliance and the New York Stock Exchange's (NYX.N: Quote, Profile, Research,
Stock Buzz) Arca Edge allow for the trading of private placements,
those markets are not likely
to spur many IPOs yet, Weild said.
"It's not a fully developed market yet, and they need more QIBs, and more research and
hopefully Nasdaq Portal Alliance will bring this about," said Weild.
One subset of the 144a market, called PIPO -- for "pre-IPO" -- is set aside for companies
planning to go public but wanting the money first before doing the paperwork that goes with an
IPO. They then typically have two years to launch a deal.

http://www.insideventure.com/files/Reuters-PrivatePlacement-Dec5.pdf

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Private Placement Trading? Does it really make any sense?
The thing to remember with all Private Placement Trading is that these are private transaction. With that being said, private placement trades are not disclosed to the public. This is even the case if one of the parties in the Private Placement Trade is a publically traded company. Private Placement Trading is, for all intents and purposes, private party contracts that have the same non-disclosure and confidentiality clauses as would a normal business to business contract would have in them. Just because one of the parties in the private placement trade may or may not be a publically traded company does not matter when it comes to public disclosure. The opposite is actually true in many instances that the two parties that are involved in the Private Placement investment are not allowed, per the contract, to disclose what the contract says or anything about the contract in the Private Placement trade, or even their business to business relationship. Welcome to the wonderful world of wholesale investing. This is in stark contrast to the retail end of the arena, where public disclosure is not only required but is also mandated by law. Anyone who has the wherewithal to be qualified financially for the private placement investments and private placement trades must follow the rules. Just because you have the money, doesn’t mean that you will be accepted into the program and can pass compliance. The really neat thing about private placement investments, at least when it comes to private placement trades, is that risk are mitigated by the contract and there are no upfront fees required to get a contract and see what would be offered, after being accepted into the Private Placement Program.

I hope this information was useful and if you have any comments or questions, please don’t hesitate to contact me. Have a great rest of the day and week!

http://tssprivateplacement.wordpress.com/2009/06/02/private-placement-trading-5/


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http://en.wikipedia.org/wiki/Private_placement
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