Stock option trading – From here we get into more risky investments, and an uncollateralized note can be a very risky proposition.

For that reason the interest rate should be high”at least 20%. Very often a weak borrower will secure the endorsement of someone to help strengthen his note. An endorser, or even several endorsers, mean nothing if they haven't the ability and willingness to pay if the maker of the note can't. A few years ago I bought several promissory notes from a lawyer in New York City. The notes were made payable to him by the debtor and he endorsed them over to me. There was also a third signature on the notes, the signature of a person we will call Mr.

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