Replies to post #254 on Alternate Energy Holdings (fka AEHI)

[Chrf4]

pertemic,

Private placement shares are most always restricted for at least one year so the buyer is taking a big risk. For that risk, the buyer is given an incentive to buy at a price below market. 50% of market is not uncommon.

Shareholders are somewhat protected by the company selling private placement shares. What do you think would have happened to the sp if the company was allowed to dump 50M shares at one time into the market when the sp was at .20? They could not get approval for such a public offering anyway.

Keep in mind that the buyers in the transaction were accredited investors that were given adequate information to make the investment decision. The risk/reward situation is good for those that could afford to make such an investment. JMO