What is the Arbitrage Pricing Theory present in Jointer's Reserve?
As well as benefiting from the Liquidity Reserves, JNTR’s secondary market value will also utilize the Arbitrage Pricing Theory. The theory holds that an asset’s expected return allows sophisticated investors to recognize discounts which allows them to increase their rate of return on an investment.
Therefore, since JNTR is a way of payment to purchase JNTR/STOCK and JNTR/ETN investors calculate that they receive a higher rate of return by purchasing discounted JNTR in the secondary market. Purchasing JNTR at a discounted rate and using it to purchase JNTR/ETN or JNTR/STOCK, investors receive real estate backed assets for a fraction of the face value.
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What is Jointer's Main Reserve?
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What is Jointer's Overflow Reserve?
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