Lecture Notes

Introduction

• Speaker: Salesperson
• Purpose: To promote a penny stock with high potential returns to a client, John.

Key Points

Client Interaction

• John mailed a postcard requesting information on high-potential, low-risk penny stocks.
• Salesperson follows up with John via a phone call to present an opportunity.

Stock Proposal

• Company Name: Aerotyne International
• Industry: High-tech firm, specializing in radar detectors
• Applications: Both military and civilian
• Current Stock Price: 10 cents per share
• Investment Potential:
  • $6,000 investment could potentially yield $60,000 profit
  • Encourages John to invest based on company's imminent patent approval

Sales Pitch Techniques

• Assurances: Promises low downside risk and high upside potential.
• Confidence Building:
  • Claims a strong track record, asking clients to judge by losses, which are few.
  • Describes the stock as a 'grand slam home run'

Transaction

• Encourages an immediate trade: 4,000 shares for $400
• Locks in the trade and promises a confirmation through the secretary.

Conclusion

• Salesperson expresses gratitude for John's confidence and welcomes him to the Investor's Center.
• Personal financial gain is implied for the salesperson, as a side note of making $2,000.