As a proof of funds provider, we work closely with traders of commodities, MTN, Tstrip, SBLC and BG's as well as Private Placement Programs. We get lots of questions from customers about private placements. Here is this month's article on: Glossary of Private Placement “Lingo”/Key Terms

In the private placement world, there are a number of unique terms which are important to understand and implement. For us, learning them took endless questions and research, but after 7 years of persistence, we finally mastered the language of “brokerland”. To help our readers avoid the same learning curve, we created something which everyone can appreciate, a “Private Placement Glossary”. Providing OVER 85 of the most important terms in the private …ver más…

Usually, this is used for hard/illiquid assets, and is stated in % in relation to the asset’s appraisal value (Loan/Appraisal Value = LTV %). MIA (Missing in Action): A term that describes what happens to most private placement brokers when they fail to live up to their promises. One day, they are blowing up your phones, the next day they are nowhere to be found. MTN (Medium Term Note): A tradable and discountable debt instrument issued by banks, collecting an annual interest before expiring upon maturity with a specified face value. NCND (Non-Circumvention, Non-Disclosure Agreement): An agreement between two parties defining the boundaries and limitations of their relationship. Typically, this agreement is used by private placement brokers to “protect” from future circumvention. POF (Proof of Funds): The process of allowing another individual to temporarily show your assets as their own, with the fee dependent upon the time it’s utilized. Also, this phrase can refer to a bank statement, or other financial document, proving the assets of a prospective investor. PPM (Private Placement Memorandum): A formal description of an investment opportunity which is created to comply with various federal securities regulations. This outlines all details of the “private placement” offered, as well the obligations of both parties involved. PPP (Private Placement Program): A