I registered just to write this post.
I've been trading shares on various European stockmarkets via the internet for a few years now. And I have to warn you about Bridge.
1) The company sells its producs via a pyramid structure, wich is considered 100% illegal in most european contries (not in the us). Its very easy to recognise:
- The company sells access to its system and asks you to invest up front for it.
- After your registration they give you the tools to recuite new members, for each new customer recuited you are granted a fee.
- Adding to this (never have seen this before) they give you the oppertunity to invest in so called "growth companies", they used to call it "new technology companies" a few years ago but since the stockmarkets crashed this isn't really a popular term anymore.
Investments in such companies are very high risk investements, over 90% of these shares are worth $0 after 5-10 years. A few of them remain stable (about 9,5%) and the remaining 0,5% give very decent returns.
Investing in a pyramid structure is very risky to. The problem is that you don't have a clue how far down the line you are. Only the people high on top in this structure actually make money.
Now about MA (apperently) selling to them:
- There hasn't been an offcial press release about it. Attracting new investors without releasing the information to the press, makes my eye twitch for a while. If a company wants to go to the stockmarket, they want to attract as many private share holders as they can get. This will raise the share price and will make a company more valueable.
- If the bridge company buys MA shares, well they don't actually buy them with thier own cash, they do it with thier so called members cash, but they do hold the right to represent every single investor. The only thing you can decide about is when you'll buy & sell. So its exacly the same thing as buying shares the traditional way (I'm talking about small amounts here not whole %'s of a company).
- So you will actually buy MA shares at a fixed price before it launches on the stock market, but what if these shares actually drop 90% on the first day? I would sure look at thier business plan, thier yearly results (wich they are required to publish on a stock introduction), ...
Small hint here: So far, PE hasn't made any profit, they are sortof 15 million USD short to do so ..
Anyway, I can go on for hours about it, but I think I made my point. Just think twice befor you invest in something like this.