FINRA Warns Stockbrokers To Kick The Tires On Private Placements Deals – Forbes

Not fond of PPM’s anyhow.  Other than on secondary markets they do not have a tradeable value and essentially worthless except in the eyes of the beholder.
FINRA Warns Stockbrokers To Kick The Tires On Private Placements Deals – Forbes
Source: forbes.com
Individual stockbrokers are on notice that regulators expect them to personally kick the tires before selling private placements OR be held LIABLE  should the PPM be found to be fraudulent in any way.

Primary way PPM’s are sold are via telemarketing or algorithm marketing (if you have proof of 2 prior VC rounds)

(1) So if the is PPM valuation is puny and costs money to sell that often exceeds the potential earnings

(2) Has potential liability on the broker or financial marketers

(3) And way too many numbskulls think the marketing is free

is it any wonder why those who are not eligible for any other financing insist on gravitating to just PPM’s… and are wondering why fewer want to bother.

globalcrossroadscapital.com sent this using ShareThis.
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