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Securities
and mortgages that have a good track record of one year or more.
Securities and mortgages with an excellent track record of timely and reliable
payment are very desirable investment instruments and can be readily sold in the
SECONDARY MARKET.
The
Scam: Reference to Seasoned Securities is most
often found in HIGH-YIELD
INVESTMENT PROGRAM SCAMS. The swindler tells the
potential investor that enormous profits can be made my purchasing blocks of FRESH
CUT SECURITIES and selling them the next day as
Seasoned Securities in the SECONDARY
MARKET.
The
reason they give is that banks and CUTTING
HOUSES issue securities in bulk, but that pensions
funds, Trusts, insurance funds, brokerage houses, and other secondary market
investors cannot purchase securities that have not been seasoned. They
persuade the potential investor that banks need outside buyers to purchase the
fresh cut securities to be sold the very next day, or even later the same day,
so that the securities can be rated as having been seasoned.
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