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As usual, the middleman is not really needed. Or they wouldn't be if a new stock exchange was designed to make this process easier. I guess this is essentiall
by dstein 15y ago
As usual, the middleman is not really needed. Or they wouldn't be if a new stock exchange was designed to make this process easier. I guess this is essentially what Second Market is trying to circumvent. If the shares of companies can be traded even in small amounts before going public the companies have a better idea what they are worth on the open market.
- mdda 15y agoNo! A thousand times no! Second Market's bid/offer spreads are enormous compared to the public stock market. Second Market is a web facade on a straight-forward over-the-counter trading operation. While the idea of doing a 'soft launch' IPO by building up from a toe-in-the-water market makes some sense, the reason that Second Market is being looked at hard by the SEC is because it's doing something that should be regulated far more than it is (because they're using accredited investor exemptions to get around the various disclosure/oversight rules).