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eddy2

04/15/15 10:23 AM

#4098 RE: clearbell #4096

That is the company its self but what your into is the financial arm of the business be it leasing, lending to customers ect.


They sell bonds to the shareholders by the owners of collateral to lend the company to buy the bonds to sell too share holders.


One is a administration fee charged for this and the other is a sales cost that is charged.


So now you have an asset that the company can use to borrow additional funds to loan to there customers to buy there product. This has taken the traditional lending away from the banks and given it to the people while lowering interest rates charged to lenders creating more capital for government institutions to give to there banking system.


To understand the rest of it you have to read the banking act of North America.


A company can go into a BK situation but this does not effect the financial arm of the company that is effected. Now granted loans can be made to that entity as well noted in the accounts that has to be paid as well the collateral that is put up for the loan.



So you see it does work opposite then what most will assume it does looking at the numbers but then I would be doing your own DD cause I do have a very imaginary mind when it comes to how the numbers truly work.


Don't forget as long as there is collateral all reporting has to be in place including 8K's but should the collateral be returned on payment of the loan to the financial arm of the company then there are the SEC rules that will ask you if what I'm telling you is to be true.


Play the game and take your gains unless you no for sure what is happening. Read and under stand the banking act, SEC rules as well as Gaap rulings and international accounting standards along with the business act of North America as well as the international business act.