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INTRODUCTION TO THE KNOWLEDGE OF THE PPP (part 2,3,4 and 5)


Escrito 30 Jun 09

2- LEGAL ORIGIN

The High Yield Investment Program (HYIP), also called Bank Debenture Trading Program, etc...are investment transactions in financial instruments; they are regulated and approved by the Fed (Federal Reserve of the United States of America) un der the captions "RISKLESS PRINCIPAL TRANSACTION" (number 3230.4.4 and following, the Fed monitoring manual 3000 Not Banking Activities, Regulation), and Private Placements (number 3230.4.2 and following, the Fed monitoring manual 3000, Non Banking Activities, Regulation and Private Placements) and whose implementation is via Traders who work very closely with banks among the top 50 in the world, designated and autorhized by that institution.

3.- AIMS

The Fed, in this general described framework, use the gained profitability to help third world projects disasters, etc... Therefore, each program is associated with a particular Project or a specific helping programs.

4.- CUSTOMERS

The investments programs as an activity of "riskless" principal, takes place within the private placement market, which "involves the placement of new issues of securities with a limited number of sophisticated purchasers in non public offering (...) Such securities are only offered to finantially sophisticated institutions and individuals, not to the public".

It involves the placement of new securities values from a limited number of sophisticated buyers by a non public offer. These values are offered only to insitutional investors or individuals with financial capacity, never to the general public.

5.- DESCRIPTION OF "RISKLESS PRINCIPAL" AND "PRIVATE PLACEMENT TRANSACTIONS"

In transactions known as "riskless principal", the operating firm, when it receives a purchase order for an applicant / investor, it acquires the values of a third firm, by purchasing them at "Inside Price" (Price of emission), and reselling those securities to the applicant / investor at market price, generating this way the corresponding gains. "Riskless principal" operations were performed in the secondary market.  The "Private Placement" in the broadcast market, acting the operating firm as agent in the placement of securities issued.

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