Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Pryderi who wrote (83723)	6/23/2002 7:25:45 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 99280

A question to anyone familiar with those special instruments set up from time to time by the brokerage houses, anyone knows anything about MSDW 10% Sparqs SBM (http://finance.yahoo.com/q?s=sbm&d=t). Apparently these were issued when SEBL was around $35, with a "promise" of 10% "returns". I don't know these instruments and its seems they are trading at 50% discount to their original issue. Do they return 20% now? What if SEBL fails, do these become worthless? Someone called me about this one, and frankly, when I see a "sure" 10% (and now 20%) return, it is too good to be true, so I ask myself is it "true" and what is the catch. I would appreciate if anyone could explain how these "instruments" work, and particularly, what is the down side. If anyone can point me to a written document about these instruments, that would be helpful as well. TIA Zeev