This past week two significant developments I would like to bring to the attention of you finance guys.
One is NYSE getting the green light to direct listings, which is what Palantir Technologies will use as early as next month.
“The Council of Institutional Investors, a group of pension funds and other big money managers, asked the SEC to reject the plan…
Unlike an IPO in a direct listing there is no bank acting as a ‘stabilization agent’ to prop up the stock if it falls sharply after its debut…
Nasdaq has a similar proposal on the table.”
The Wall Street Journal, Aug. 26, 2020
Another one is the SEC expanding its definition of accredited investors.
“Previously, to qualify as accredited investors, individuals need to have a net worth of at least $1m excluding the value of their primary residence, or an annual income of at least $200k for the last two years [300k if married and filing jointly] . Now, many more people may be able to make those investments, if they can prove that they are knowledgeable enough, including employees of investments firms or governmental bodies.
SEC Commissioner Hester Pierce tweeted Wednesday: “Americans shouldn’t have to ask the SEC for permission to invest, but today’s accredited investor rule at least offers people a path to ask permission based on their education, rather than simply telling them ‘no, unless you’re rich.’”
WSJ, Aug. 26, 2020
“The Commission indicated that it preliminary expected that the initial Commission order accompanying the final rule would include the following certifications or designations administered by the Financial Industry Regulatory Authority, Inc. (FINRA): the Licensed General Securities Representative (Series 7), Licensed Investment 14 Adviser Representative (Series 65), and Licensed Private Securities Offerings Representative (Series 82).”
