I asked Muse to explain it to me, here is the repl
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Master Regenerative Virtual Brokerage (MRVB) or Bank as some refer to them is a brokerage account.
MRVBs can be established in two versions:
Base version is MRVB (2X)
A) Brokerage account with margin capability
Level II
C) Stock Indices -- 5 to 10 securities
D) $2,500.00 activates the margin & doubles the position fund
Pattern Day Trader version is MRVB (4X) configured with 6 parts
A) Brokerage account with margin capability
Daily Trade Buying Power @4x
C) Total View
D) Open Book
E) Stock Indices -- 5 to 10 securities
F) $25,000.00 activates a 4 to 1 leverage
The account is normally weighted with cash and/or other companies shares (not TPAC) acquired through payment option scenarios. When configured properly, the account provides a 2x & 4x multiplier offering the operator a credit line to increase acquisitions on a daily basis. When infused with cash, this can have a profound affect. Also if the shares acquired have true value the account offers the operator true credit.
No need for an application, just write a check. Knowing how to fund and maintain this type of account will provide TPAC income generation independent of day to day bearing sales. This can place/support a stable financial floor even during slowdowns in the market. Many small companies such as TPAC do not know these platforms exist or how to use them to create great hedging constructs.
--FR
--Day Trader
--Hedge
--Margin
--Indices
These terms are all standard to the industry. When configuring them as a working unit, MRVB is born.
Master because there is normally more than one. This will be TPACs first.
Regenerative because it actually allows the operator to draw from the generated revenue while keeping the cash-on-hand and then repeats the process.
Virtual because it is not a real bank however has the properties of a bank because you can take a loan from the system based on the credit power of the securities stored within without an application.
This is not a smoke and mirror, this is a fact and is used every day by large companies… it has become a tool of choice. This is how a company can hedge against the effects of dilution.
USA FR is experienced in this type of revenue generating operation and can use this scenario to raise the base revenue on a quarterly basis. One can definitely understand what that will do for a stock price per share.
Since the MRVB is external to the stock it has no drag but when quarterly revenue is accounted for it can be used for a positive effect.
An MRVB can be designed for daily day trading volumes/dollars. Remember, stocks can rise each quarter not because of supply and demand but because of increased revenue. Large companies have really big accounts and use this type of system to hedge against revenue lost. They may call it something different. Each group normally names the system because they configure the blocks.
More companies with revenues up to $1M use MRVBs to account for seventy-five percent of their annual revenue.
TPAC IR Specialist
ir@tpacbearings.com