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> I hope more companies crack the secondary market puzzle. This feels like the wrong solution. I mean, the reason we need a secondary market is because compan
by jedberg 3y ago
> I hope more companies crack the secondary market puzzle.
This feels like the wrong solution. I mean, the reason we need a secondary market is because companies are going public much later than the used to. Why? Because the government made it a lot more onerous to go public. Why? Because companies were abusing the process to enrich insiders.
If we make the secondary market easier, we'll just be right back where we were, and then the government would probably just step in and make it onerous again.
I think the actual solution here is to make going public easier again while addressing the loopholes for abuse so that companies can go public sooner and everyone can get liquidity sooner.
- granshaw 3y agoFrom reading your first paragraph I thought you were heading to an opposite conclusion, but yes, completely agree that we should make it easier to go public
- jgilias 3y agoAnd insiders found ways to enrich themselves even while working with the onerous process. Remember the SPAC craze? Another example of where the honest people get penalized with a heavy process in the name of zero fraud.