The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
March 7, 2000
In this week's report. . .
Individual Investor Group Scores Big On Equity-For-Advertising Trade
Jonathan Steinberg, CEO of the Individual Investor Group, the parent of Individual Investor magazine, recently declared the results of a barter arrangement the magazine originally consummated in 1997.
Back then, the magazine provided Wit Capital with advertising and was paid with 250,000 shares of Series A preferred stock...valued at $250,000.
Then, as a result of a 7 for 10 reverse split of common stock and the completion of Wit Capital's initial public offering on June 4, 1999, these shares were converted into 175,000 shares of common stock, which has subsequently been cashed out at 10 times original value! In the company's fourth quarter they reported a one-time gain of $2.8 million from the sale of its stake in Wit Capital Group.
Barter Is Routinely Used By Our Nation's Most Powerful Lobbyists And Merchant Bankers
Former politicians and government officials often become lobbyists when they retire from their government positions. But today many are moving in another direction, becoming more involved financially in the companies they represent...and they call themselves merchant bankers.
Regardless of what title they use, today lobbyists/merchant bankers are scouting investments, raising money for business ventures, plus taking ownership in deals. And, more likely than not, barter is a component in the negotiations.
The well-connected now offer business advice and seek to attract investors, especially for high-tech companies. In return for their political connections and providing "strategic investment advice" these former government officials turned merchant bankers receive payment in the form of barter, i.e. stock (upwards of 10% ownership) in the companies they are assisting to secure government contracts.
The Zen Of Cash Flow
The power of a continual leveraging of your assets is staggering. Consider the following. . .
If you started with 2 pennies in the first square of your chess board and doubled the result sequentially through each of the remaining squares, you would end up with $184,467,440,737,095,516.16 in the 64th square!
Here & There. . .
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