The financial markets for investors who would like to make private placements or trade small to medium sized companies is limited and generally the disclosures are non-existant. The problem with financing small businesses that are not trading is that your personal position within the company is not liquid and generally has a little to no market. By investing in small businesses that are trading on an exchange platform, you can benefit from the success of the companies, but at the same time be able to exit into an existing market of shareholders or investors.
The most important part for an investor is:
- Having professional advice from a licensed broker dealer
- Being able to get all of the information and disclosures on a company to make a decision
- Education on how to invest in the markets
- Tracking of Companies news and alerts
- Being able to set you stop loss levels and or the levels you would like to exit your investment
The IFUNDX system integrates the investor, the broker, the company, and the financial market into one platform.
Investors are secure, and have the ability to influence the investment decisions made through the platform.
SIGN-UP NOW TO BECOME AN INVESTOR
INVESTOR SYSTEM FEATURES INCLUDE:
The investor joins by signing up through the internet to the online platform, supplying their KYC information and documentation, and choosing an exchange broker, or having one appointed to them. A double pin is produced, where by there is a user identification card with over 54 various PINs assigned to the user. A second card is provided with over 54 double digit pins. The two pin cards that only the investor has are capable of allowing the user to login, make trades, make transfers, request funds, etc. Therefore, any investor initiated activity is strictly secure. For example, if the investor is making an investment into a private placement, the system produces the PDF document, and they can electronically sign, only by entering in the cross reference of pins.
Login and Security Module:
Two pin codes are supplied to each investor, one of which is a card with randomly different PINS printed. These PIN codes are unique to the investor. One card is a series of 4 digit codes, one PIN chosen by investors. To make any activity within the system that involves trading, money, communications, and or request for information, the investor must identify that they are who they say they are by entering in their personal PIN, and then a PIN from the cue card. This cue card pin randomly alternates, someone may login with the personal pin and the exact 4 digit requirement, but then to make a trade, you would be asked again to put in your personal pin and a new 4 digit pin from the card. This insures that even if someone left their computer logged in, they could not take any actions on the client account without having the PIN card. New PIN cards can be requested by investors through a series of password recovery questions and private details. However, for the ease of client and broker relationships, an investor can simply call a broker dealer on the system to make a trade if they are not technically inclined or do not have their PIN card. Therefore, the security is really for investors who would like to take online trading into their own hands.
Brokers also have a similar PIN based system of which trades cannot be done for themselves or clients without entering in the PIN for that trade, so that every individual trade is verified.
Restricted and Unrestricted
The platform has either restricted shares which investors can buy and brokers who sponsored the listing can sell, or unrestricted shares which any one can buy and sell. This goes for all products within the system. If an investor goes to a restricted product, they will see a restriction notice, and only have available the ability to buy, not to sell. If the securities are unrestricted, they can choose to sell the shares into the market. The issuer essentially has the ability to apply for the restriction to be removed from shares within the electronic trading system. All shares in a single offering are either restricted or unrestricted. One investor doesn’t get the privilege of having unrestricted shares while others are unrestricted, it is either one or the other for complete fairness and transparency. However, a company can make two offerings, one which is restricted, and one which is unrestricted. They can also place restricted and unrestricted debts, bonds, carbon credits, and contracts. The rules are essentially the same for trading.
Based on the offering documents filed with the exchange, there may be minimum quantities, a notice will come up for investors if they have asked for less than the minimum. Therefore, in regulated areas such as Europe where 50,000 to 100,000 euro may be a minimum unit, this would stop individuals from investing less than this amount. This also greatly depends on the Broker interaction with the investors.
In the event that it is a sale of shares that falls under a new crowd funding regulation, where offerings can be done on a micro scale, this minimum could be $1 for example but maximum of $2,000. This essentially is set by the issuer or offering party. The exchange must however approve and verify the minimum quantities in interest of the investor before allowing offerings to be made.
The entire system is run on three currencies, US dollar, Great Britain Pound Sterling, and European Euro. (Potentially BitCoins in the future.) Every investor and broker have 3 bank accounts of which they can order shares from. Issuers can list in the three main currencies. If an investor has US dollars and decides to invest in Euro’s, they are prompted with a real-time currency exchange quote and asked to accept it with their double pin code combination. Clients can move funds from one currency to another real-time between these three currencies. Account holders can:
- Transfer between accounts
- Make a trade in one currency and agree to transfer the funds in another currency to cover the trade
- Add funds to the designated accounts in all three currencies with unique PDF wire instructions downloadable on request for their specific account
- Withdraw funds from the account in the currency originally deposited or to the clients account if they have one in the currency requested (transfer charges and account minimum balances do apply)
- Trades are directly deducted from the currency account of which they are listed in, issuers take on any currency risk from foreign investors.
- Statements can be requested via email, in pdf, or mailed to clients (subject to minimum balances and fees)
Buying and Selling Shares
In general, pre-IPO firms will have shares that can be bought from the issuer but not sold into the market, as they would have some kind of hold or restriction. Therefore, on these companies there is a BUY but no SELL option on the screen of the company. Companies who’s shares are free for trading will have both a BUY and SELL option, which would include any first quotation, main, premium, or other market that disclosures are adequate to allow for public trading.
Status’s of a Trade
Processing: A processing trade cannot be cancelled, this means that the resolution for issuing the shares has already been sent to the transfer agent for uploading shares into the brokerage account.
Pending: This means that the trade has not been put into processing yet, and can be cancelled until the status changes. This can be cancelled by the investor, or by the broker dealer who may not accept the trade.
A completed trade simply shows with the shares in the financial account of the client.
News: This is the press releases of the particular stock.
Alerts: This includes Portfolio alerts, account balance alerts, watch list, suspension alerts, financials and filing alerts, activity alerts on stocks going up or down.
Messaging: This is a tool for investors and their broker to communicate on, in addition, alerts and releases can be sent to the message system.
Funds: This is the account balances and reload information for adding additional funds.
Settings: Within the settings section, the investor can configure their account.
Sign-up as an IFUNDX Qualified Investor, and we will register you into our system today