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A Primer on Private Placements – Regulation D and Liquidity Issues

A Primer on Private Placements – Regulation D and Liquidity Issues
Sometimes spoken of as Regulation D investments, unconventional investments, or unregistered offerings, private placements investments usually all have similar risks and characteristics. Some examples of private placement investments include notes, preferred or common stock, bonds, interest in limited liability companies or partnerships, and debentures. Regulation D Rules One of the major characteristics of private placement investments is that as security offerings they are not subject to the standard requirements for registration with the SEC. This is unlike what is required with other investments such as mutual funds, and stocks. The 1933 Securities and Exchange Act and its Regulation D, via Rules 504, 505 (now integrated with 504) and 506, give permission to companies to offer securities for sale without registering them with the SEC. Simply put, private placements are not required to adhere to the rules and regulations which were initially instituted to protect investors from the general public. Some of these regulations, for example, required certain disclosures to be made. Lack of Liquidity A key feature that characterizes private placements is that they are not very liquid. As opposed to mutual funds and stocks, private placements are not offered through an exchange. Investors must take this into account when considering the use of these instruments. It is advisable to expect to hold these securities for the long-term, or even an indefinite period of time. You should not necessarily expect to be able to sell your interests and private placements within a certain period of years. In fact, there are restrictions on transfer with Reg D offerings, so that transfers must be done only in compliance with strict rules. Just as you would do with any investment opportunity, it is important that you and your investment advisor evaluate whether or not a private placement is beneficial to add to your portfolio. This is a serious decision to make and should be done with the appropriate amount of thorough research and investigation of the issues and possible benefits and/or drawbacks. It is best for investors and their financial or investment advisers to collaborate together in order to achieve a thorough understanding of the risk/reward calculus involved with any type of Regulation D offering. If any doubts arise about the benefits of investment, it may be best to pause and not move forward at this time, or simply decide not to participate. Reg D private placements are some of the best investments one can make, but you’ll have to be ready to be in it for the long haul without any expectation of liquidity. 2 people like this post. Like...
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Transferring Money To India

One major benefit of online remittance service is that online money transfer can be conducted from the comfort of your home. You can use your personal computer and initiate an online money transfer after just a few clicks. In many cases, you can also schedule the date, on which your beneficiary should receive your remittance. Your remittance can be transferred from your place to any other destination of the world. The reach of credible online money transfer services is almost universal. Time is not a problematic issue as online remittance service is available 24*7 and seven days a week. Skilled ‘customer support’ teams of the online remittance service providers clarify the questions of remitters regarding the online remittance process. You can track online the status of your transactions conducted through online remittance services. You are given regular updates via SMSes/emails about the whereabouts of your remittances till they reach the intended recipient. Low/zero transfer fees and competitive exchange rates are offered by online remittance service providers to enlarge their customer base. There is a lot of competition in this market. Thus, the customer ends up getting a cost-effective deal. More money of the customer reaches the purse of the recipient. More money of yours is saved. That will surely delight you. All your transactions are encrypted, thereby disallowing any third party from knowing your private transactional details. Some online remittance service providers provide insurance to remitters, which guarantee a payback to remitters in case of an unsuccessful remittance. Be the first to like. Like...
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Bad Press About Payday Loan Companies: A Response

There has been a lot of bad press about payday loan companies in the news lately; more and more people are expressing their rage about the so-called unfair lender-borrower relationship. Comedian John Oliver recently did a bit about the payday loan industry, criticising the industry for several “shady” business practices. Although there may be a handful of not-so-reputable companies offering short term payday loans in the industry today, it is hardly fair to assume that all payday loan companies are underhanded companies seeking to harm loan applicants. Read the information below to learn more about why you really can trust some payday loan companies and why said companies are a legitimate financial “move” for many individuals in financial distress. The Truth In Lending Act Certified companies providing applicants with short term payday loans are held to a high standard by the federal government. A legislative act called The Truth In Lending Act was put into effect in order to create a set of guidelines that must be followed by certified, legitimate lending companies. If you are interested in taking out a payday loan from a lender that is credible, you may want to make sure they are certified. Legitimate Reasoning Much of the bad press about short term payday loans deals with the high interest rates charged by most payday loan companies. Interestingly, most of the media neglects to mention the reasoning behind the high interest rates charged by loan companies. Payday loan companies are well-known because they give loans to individuals whom other traditional loan companies would consider too “risky” to approve. For instance, most short term loan companies do not have a problem with giving loans to individuals with poor credit. However, it would be foolish for any business to take such a risk without a certain degree of “cushion” or protection. Short term payday loans have high interest rates because the companies that give money to high risk individuals are “going out on a limb” to trust a person (a person who may have any kind of financial history). The chance that such an individual should neglect to pay back a loan is relatively high, especially when compared to the risks faced by other traditional lenders. With such a degree of risk, short term loan companies charge high interest rates in order to supply money if the borrower falls through. Clear Expectations Even though legitimate payday loan companies make their expectations clear, many individuals fail to achieve the outlined standards given. Therefore, many individuals end up in a vicious borrowing cycle that leads to further financial challenges. Keep in mind that, in this case, the lender is not at fault or conducting business in a “shady” fashion. Remember that not everything you hear in the press is true; there are, in fact, many short term loan companies who are perfectly legitimate and who consistently help those who are in financial desperation. 1 person likes this post. Like...
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What to Look for in Quality Financial Services

Not everyone can get to the bank during normal operating hours. That means there is a real need to locate Quality Financial Services that are available when going to the bank during normal business hours is not possible. In evaluating these services, it pays to find out just what they have to offer. Here are some types of financial services that could come in handy. Check Cashing Services When depositing a check and waiting for it to clear is not an option, look for a provider who will cash the check on the spot. While this will likely mean incurring a fee of some type, having the cash in hand now rather than later makes it possible to avoid incurring late fees and penalties on other obligations. Firms like American Check Cashers provide clear guidelines in terms of identification and other things needed to complete the check cashing process quickly. Money Orders and Wiring Funds When there is the need to send money through the mail, money orders are a great way to go. A firm offering Quality Financial Services will offer money orders that are honored all over the country. This makes it easy to purchase the orders and have them on the way to the recipient quickly. There are occasions when the money needs to arrive as soon as possible. Work with a provider who also offers the option of wiring funds with quick delivery. Always find out where the recipient will need to go to claim the cash, and the type of documentation needed to complete the transaction. Short Term Loans For people who have experienced some financial issues recently, obtaining a loan from a traditional institution is not always possible. Fortunately, there are lenders who offer payday and other forms of short-term loans as part of their financial services. By providing basic information such as proof of employment and income, permanent address, and identity, it is possible to have the money in hand in less than a half-hour. Even for people who do not normally have a need for financial services outside of normal banking hours, it never hurts to find a reputable firm in the area. Doing so ensures that if some sort of emergency arises, there is no doubt about where to go to secure the help that is needed. Be the first to like. Like...
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Professional Accountants Can Get Free CPE Credits Online

If you want to earn free CPE credits, then you need to contact an online education provider that offers pilot courses. Now you can earn free online CPE for CPAs. When you pilot a course you are helping an educational institution establish how many credit hours it takes to finish a course. They take the average time it takes participants to finish a course and use it as a basis for a course time table as recommended by NASBA and AICPA guidelines. Once a course is completed, within twenty four hours, you will be sent a discount coupon via email. You can use the coupon to take additional courses and get credit for it, as well as another course that you choose. Earn Credits by Following a Few Simple Details Once you have piloted a course and taken the final exam, which you must pass with a grade that is at least 70%, then you will receive a link that allows you to upload your bio or resume. This is the perfect way to affordably take pilot courses that can earn you CPE credits. All you need to do are satisfy a few requirements and then you are able to earn enough credits to help keep your licensure up to date. Most continuing education establishments would also like you to complete a few evaluation questions after an exam. In order to take a pilot class it is recommended that you do not have any previous knowledge concerning the subject matter, or have taken the class previously. Since pilot courses are used to evaluate how long it will take to finish a course, they also need to be finished within thirty days of choosing the course. A pilot course must be completed in order to get an additional course for free. Enhance Your Accounting Career with Free Classes When you want to further your accounting career, try taking free courses. There are many online education providers that offer free courses for newer subjects such as cloud accounting. However, even free online courses need to adhere to regulations that are approved by many jurisdictions. Being able to study when you have free time is one of the many remarkable reasons to take online courses. They are an affordable way to help make sure you keep up with your CPE credits and retain your licensure, as well. Not only are the courses user-friendly but they are perfect for brushing up on accounting principles and guidelines. Cpethink.com allows people to earn free online CPE for CPAs. Simply follow their easy guidelines to start taking pilot classes today. 1 person likes this post. Like...
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