The U.S. capital markets can make the difference between peace and war.
For the last 15 years, Network 1 Financial Securities, Inc., has been pursuing investments in many different parts of the world, with the belief that there are many countries that have unique business opportunities that would lead to profitable investments for U.S. investors.
With the world shrinking every day and countries developing new industries and new technologies and developing their rare earth mineral rights, there are many opportunities available to American investors.
China has 1.4 billion people, India has 1.4 billion, and add to that, the population of the Middle East, South of America, Africa, Southeast Asia, they all would like to take advantage of the United States’ unique capital markets system. All of these places have companies and industries that can represent unparalleled investment opportunities for US investors.
There has been the U.S. capital markets available to the larger companies, in some of these countries, however, the smaller and newer companies have never been able to tap into to our capital markets. These types of companies help to develop a country’s middle class and an independent entrepreneurial class, that not only strengthens their economies but allows them the ability to work closer and communicate better with the U.S. government and its citizens.
It is one of my beliefs that, should the United States capital markets system be available to other countries, including adversaries, like China and Russia, and North Korea, it would be a strong deterrent to any armed conflict.
The United States’ strong capital markets, strict regulations, and robust banking system can be used by all countries. This would provide them with the help they need to lift them out of poverty, provide for a better future for their citizens, and create a growing middle class.
During that process, the citizens and leaders of those foreign countries will get to understand the United States, its political system, and the United States will get to learn more about them.
In a small way, Network 1 began to do initial public offerings and private placements for companies headquartered in many different countries or had their main operations in those countries.
Over the last 10 years, Network 1 has raised capital for companies located, or whose main business operated, in China, Malaysia, Singapore, Hong Kong, Jordan, the United Arab Republic, and India.
For Network 1 and its regulators, there have been many different challenges to deal with in order to assure proper due diligence, gather reliable information, review accounting and reporting supplied, and make sure proper disclosure of any risks that should be considered are made. All being done, while trying to understand new cultures and how those countries’ economic systems operate. Trying to understand how those companies operate in different political systems. We also have to concern ourselves with making sure that the companies are operating legally in their host countries, so we can try to minimize any kind of risk U.S. investors might have.
However, I believe that countries that actively trade together, using fair trading policies, coupled with those countries availing themselves of private capital, using our capital market systems, will greatly enhance world economic growth and, more importantly, world peace.
There is no doubt that if mankind is to survive and not end in a self-destructive battle, then helping each other, and understanding each other, may be the only true way it can be avoided.
I believe that strong world economic growth for all nations is certainly one way to make sure the battle never occurs.
By Damon D. Testaverde
Chairman of Network 1 Financial Securities, Inc.
