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Big-boy letter: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "{{a|repack|}}A written acknowledgement from an investor that it accepts the risks of the deal and is not relying on the arranger to explain the risks and potential downsides....") |
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{{a|repack|}}A written acknowledgement from an investor that it accepts the risks of the deal and is not relying on the arranger to explain the risks and potential downsides. This works — ''may'' work: we hear some inarticulable doubt expressed about it that by [[law firm]]s, who have a direct interest in it being sceptical about it, since that way they get to write you a turgid prospectus with five hundred pages of risk disclosure — for | {{a|repack|}}A written acknowledgement from an investor that it accepts the risks of the deal and is not relying on the arranger to explain the risks and potential downsides. This works — ''may'' work: we hear some inarticulable doubt expressed about it that by [[law firm]]s, who have a direct interest in it being sceptical about it, since that way they get to write you a turgid prospectus with five hundred pages of risk disclosure — for “[[Professional client|professional]]” or “[[Qualifying institutional buyer|institutional]]” investors buying your deal but it won’t for [[retail]] investors, at least beyond the regulatory reach of the Securities and Exchange commission. | ||
In America, as Matt Levine is fond of saying, “everything is securities fraud”, and big boy letters may well not work. | In America, as Matt Levine is fond of saying, “everything is securities fraud”, and big boy letters may well not work. | ||
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The legal eagle’s perfect place is to counsel that one should have big boy letters ''and'' a five-hundred page prospectus, because that way they get to charge you £1,500 per hour for wasting trees while taking no actual risk — because, big boy letter, you know? | The legal eagle’s perfect place is to counsel that one should have big boy letters ''and'' a five-hundred page prospectus, because that way they get to charge you £1,500 per hour for wasting trees while taking no actual risk — because, big boy letter, you know? | ||
{{sa}} | {{sa}} | ||
*[[Qualifying institutional buyer]] | |||
*[[Offering memorandum]] | |||