Securities Transactions
The public securities markets may not be the ideal forum to manage the sale of a substantial block of securities from the same issuer. A large block of stock that is offered for sale publicly can depress the value of that stock. To avoid this problem, Jakob Fugger extends its bulk sale program to a limited pool of its long-term clients. Specifically, we will agree to purchase an entire block of stock for a negotiated price and then promptly deliver the full cash proceeds of the sale to the investor. We take full legal and equitable title to the securities and are free to resell them within the context of our own daily operations.
Investors often use block sale transactions to alter the overall composition of their portfolios for diversification or other reasons. Jakob Fugger is able to offer its bulk sale services in this manner because of its status as a private financial services entity that is not subject to the same regulatory oversight that attaches to registered or licensed investment advisors. The burden of filing reports or disclosures of bulk sale transactions of this nature is on the investor, per the bulk sale agreement that we prepare to memorialize the transaction. As with our other sophisticated securities transactions, investors are responsible for their own due diligence.
Bulk securities sales are appropriate for only a small number of sophisticated investors who have significant experience in international investment markets.