Tue, Jul 17th 2007 6:51pm
Whether it's shareholder lawsuits, political interference or Sarbanes-Oxley, there are plenty of reasons for companies to want to avoid the public markets these days. Still, public markets represent a good way to both raise money and give a company's principals liquidity. Private equity firm Apollo Management has announced that it will sell its shares on a private stock exchange established and managed by Goldman Sachs. The exchange is only open to institutional investors, which will allow Apollo to avoid unwanted regulatory scrutiny, while generally relieving it of many other burdens that face public companies. While Apollo will still have to communicate information with investors, it should have a lot more flexibility than the current public system allows for. If Goldman Sachs' exchange can garner a critical mass of listed companies and institutional traders, it, and others like it, should represent an interesting alternative to traditional markets.
If you liked this post, you may also be interested in...
- Autonomous Bot Seized For Illegal Purchases: Who's Liable When A Bot Breaks The Law?
- Study Shows How Notice-And-Takedown Reduces Transaction Costs In Making Works Legally Available
- Bloomberg News Pays Reporters More If They Move Markets
- The Death Rattle For Blackberry: Once Again, Markets Change Very Quickly
- 'Gears Of War' Designer: Used Games Must Be Killed So Unsustainable Development Can Live