Casull Financial Advisory - RIA (Registered Investment Advisor) Member of Finra & SIPC
No Surprise Ameriprise Friday Jan 23 2015
According to an article written by Emily Flitter, Reuters, at least 3 times in the past two years, Ameriprise Financial Inc. asked issuers of private real estate investment funds to change the structure of their deals so it could sell more of the securities to their vast client lists, according to interviews with multiple sources with direct knowledge of Ameriprise's practices and a review of testimoney in an arbitration hearing involving Ameriprise. Private placements generate higher commissions than most other products, securities brokers/financial advisers at firms like Ameriprise sell. Private placements are not liquid, meaning they are not traded in the open stock market which make it nearly impossible to get out of the investment should it become desirous, especially if the investment's value is falling. We used to call this scenario, "Catching a falling piano". According to several experts, myself included, The company to whom the investment is being made in, should base their offering size (money gained from the offering) on the money they need, NOT on how much money the investment firm selling the offering to their clients wants to make.