41–50 of 59 posts
Dear SEC, Reduce the costs and risks related to going and staying public - you'll easily get your wish!
How would the SEC reduce "risks related to going and staying public?"
These unicorns are in a unique position to tell the shareholders -- whom are, let's face it, increasingly acting like a cartel across wide swathes of the economy because there are fewer and fewer of them each fiscal year -- to tell them to fuck off . And that scares the regulators because they're paid to keep "everybody in the fold" by extolling the virtues of being publicly owned. Here's a useful tidbit: the mysteri…
Earlier quoted context omitted.
We know how it rolls in the long run. Terribly - for everyone but the shareholders.
And that's the only one who matters. The owner of the capital. At least that's how our system is set up.
> these tech start-ups are missing out on the market discipline public companies receive by being accountable to the whims of public shareholder Wow, you mean the type of accountability faced by GM, Ford, Exxon Mobile . . . how can this man say that with a straight face ?
By being a public company, Enron couldn't hide its fraud. I have concerns about the lack of similar checks on unicorns.
These unicorns are in a unique position to tell the shareholders -- whom are, let's face it, increasingly acting like a cartel across wide swathes of the economy because there are fewer and fewer of them each fiscal year -- to tell them to fuck off . And that scares the regulators because they're paid to keep "everybody in the fold" by extolling the virtues of being publicly owned. Here's a useful tidbit: the mysteri…
Surely you're joking? The "shareholders" OWN the companies in question. Of course it is their right to demand whatever they want from the company - they own the thing. No company can tell its shareholders to fuck off, because it is subservient to them.
I imagine that many of the co-founders of the "unicorns" were smart enough to replicate Zuckerberg and Brin/Page and are subservient to no one.
Why would I want to sell a company that I enjoy running to a bunch of people who want to turn it into cash? Public markets seem to be for people who want to take on some debt or are tired of being responsible for the future of their business.
Liquidity. You might not be happy about other people "turning it into cash," but that doesn't necessarily mean you or your investors don't need cash.
Mark Cuban points out that the SEC should be issuing clear guidelines instead of vague threats[1]. >Cuban argued the SEC should make clear rules so private companies and investors know where they stand with regulators ... "The one thing that could make the whole thing go backwards instead of forward is uncertainty," he said. [1] http://www.cnbc.com/2016/04/01/mark-cuban-heres-the-problem-...
It's a much stronger negotiating position for regulators to use a vague "well, we're not sure..." and leave themselves room to maneuver and potentially punish any of the 'unicorns' at any time.
Earlier quoted context omitted.
How would the SEC reduce "risks related to going and staying public?"
For starters, make the rules for the first 365 days after the IPO the same as being private; which would include limiting the first year of the IPO to qualified investors.
Haha. This reminds me of the Simpsons where Homer takes Mr. Burns's boat out to international waters (to circumvent local drinking laws) and the coast guard tells them to come back so they can be under their jurisdiction. Bart: [through a bullhorn] Hey, Coast Guard! Try to stop us now, you lousy Americans. Coast Guard: [through a loudspeaker] We can't hear you! Come three hundred feet closer! Bart: Nice try. You're n…
Private market maritime security isn't infallible:
http://www.dailymail.co.uk/news/article-2616003/Mixture-hero...
So what is happening exactly? Is there unrealistic optimism happening here or are people being suckered out of their money. Is the government concerned about the eventual pop and so is telling the very people who would benefit the most to quit it? Seems like they should be telling the _investors_ to stop, no?