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Re: BobSinCA post# 18091

Wednesday, 09/15/2010 11:18:15 AM

Wednesday, September 15, 2010 11:18:15 AM

Post# of 42997
To raise capital via a bond sale or IPO (Initial Public Offering) The marketing institution sells the product, (Bonds, or stock as the case may be) and for this service they get a commission. That commission is subtracted from the proceeds and the balance is sent on to the company. If you are under the impression that the company has to come up with $12 million for this to happen...that's incorrect, they don't. This is the way Wall Street has been doing it from the beginning. Logic would tell you if they had to come up with $12 million to do the deal they would not have to do the deal in the first place because they would have $12 million. The source of all the money is from the bonds.

This is only my opinion!

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