Copyright 2006 Timothy Rohrer
The Mazu Business Pack makes some pretty grandiose claims. They claim that, by purchasing their training package, one can make $100 to $1000's per week in passive, residual income without having to sell anything. It sounds almost too good to be true, but is it?
Included in the $297 Mazu Business Package is: an overview DVD, downloadable step-by-step instructions, access to the Mazu "member's area", a 2-hour affiliate seminar on audio cd, and entry into the Mazu affiliate program. According to the company website, this package gives the user information about 10 of the most lucrative income streams available today.
One of these incomes streams is arbitrage. According to Wikipedia (an online encyclopedia), arbitrage is defined as: the practice of taking advantage of a state of imbalance between two or more markets: a combination of matching deals is struck that exploit the imbalance, the profit being the difference between the market prices. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives and currencies. Arbitrage is possible when one of three conditions is met:
The same asset does not trade at the same price on all markets ("the law of one price"). Two assets with identical cash flows do not trade at the same price. An asset with a known price in the future does not today trade at its future price discounted at the risk-free interest rate (or, the asset does not have negligible costs of storage; as such, for example, this condition holds for grain but not for securities).
For example, if you can buy items at one price at a factory outlet and sell them for a higher price on an internet auction website such as eBay, you can exploit the imbalance between those two markets for those items.
According to the encyclopedia, arbitrage transactions in modern securities markets do involve fairly low risks. The key is being able to identify these imbalances quickly and execute the trade before the market shifts. This can be challenging and nearly impossible for the novice, but according to Matt Gagnon, the founder of Mazu, his software makes it possible. It is an automated program, which checks every few seconds for arbitrages around the world. When an arb is found a bell goes off, and the user then places their arbitrage.
Arbitrage is one of the reported 10 income streams included in the pack. Not all of streams are revealed on the website, but they claim that the others are also quite valid and lucrative. Mazu also offers a full refund if the purchaser does not make money in the first thirty days.
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Tim Rohrer is an established home business owner and writer. To learn more about a program that has been paying the bills for months, visit http://www.profitplusonline.com
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