Bernanke could be the next Pope
To help fill the sheeple with hope
In times of despair
Instead of some prayer
His printing will help them to cope
The Limerick King
Monday linksbomb. 30 stories.
WASHINGTON (MarketWatch) — A panel that advises the Securities and Exchange Commission on Friday recommended an exclusive exchange be created for micro and small-capitalization public companies that would only be available for high net-worth investors.
The panel, the advisory committee on small and emerging companies, voted to urge the SEC to support the setting up of an exchange for small publicly traded companies that would only be accessible for high-income individuals such as so-called accredited investors, who must have net worths, excluding their homes, of $1 million or more or income of $200,000 or more for at least two years.
Companies listing on an exchange set up for high-net-worth investors may not be required to provide costly prospectuses and other disclosures that are necessary when retail investors are involved. Backers contend that this would drive down costs associated with public offerings and could encourage private companies to take the plunge into becoming almost-public companies. However, retail investor advocates worry that small investors would be blocked from making desired investments.
Stephen Graham, co-chair of the panel, told MarketWatch that it is difficult for small private companies to “cross the line” and become publicly traded because of the costs involved in being publicly traded. He said the SEC would be responsible for determining what kind of disclosure would be required for this group.
Retail investor advocates were less than thrilled at the idea of an exclusive market for high net-worth investors. Charles Rotblut, vice president of the American Association of Individual Investors, told MarketWatch that it’s a question of fairness and access.
"An accountant that does not have the wealth to be an accredited investor, but understands financial statements, would not be allowed to invest."
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