Trade Processing
Trade Process:
- The seller or seller's agent calls the trading desk requesting bids
on an unsolicited basis.
- The trading desk representative seeks bids
from an extensive database of buyers.
- The representative contacts at
least three buyers for bids, according to the NASD regulations of "best
execution."
- The seller is contacted with the best of at least three
bids.
- If the seller accepts the bid and commits to sell the units,
the limited partnership's transfer agent is contacted to verify the
seller's
ownership
and registration information.
These trades are considered to be "agency" as buyers set price
based on their personal evaluation and prior trades in the secondary
market.
Trade date is determined when the seller accepts the bid. This
offer and acceptance is considered a verbal contract upon which a written
contract
is faxed or mailed to the seller. The buyer is contacted to advise
of seller's acceptance and sent a contract as well. The buyer returns
the
contract with the purchase check when informed that the seller's executed
contract has been returned.
Required Documentation:
- Seller/Buyer contracts indicating price,
commission & fees, partnership name, number of units and exact
seller/buyer registration. These contracts include a Power of Attorney
authorizing APS to execute all pertinent documentation necessary to
transfer title by the transfer agent.
- For the first time buyer, a new
account form application must be signed and completed.
Submittal to Transfer Agent for Title transfer:
When both buyer's and seller's executed contracts are received (good
delivery) as well as the buyer's purchase check, the transfer package
is sent overnight mail to the transfer agent.
Closing the Trade:
Seller is sent the proceeds of the sale, buyer's are
paid distributions owed, and commissions and fees are paid.
For both buyer
and seller a confirm letter is mailed at the close of the trade. This
confirm includes, number of units, partnership name,
trade date , ex-dividend date, and disclosure of commissions & fees.
Securities Cleared Through First Western Advisors, Member
NASD/SIPC
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