"EXPAT STOCK MAY
GET HOMESICK
THE LOOSE FEDERAL REGS that govern oversees stock sales are about to get tightened-but not as much as Wall Street fears. The Securities & Exchange Commission is under pressure from congress and others to rein in its controversial Regulation S, enacted in 1990 to make it easier for U.S. companies to raise capital abroad.
To critics, Reg S made things too easy. Overseas buyers need wait only 40 days before they can sell these unregistered securities (often purchased at a discount of around 15%) back to Americans at full price. For small-cap stocks, that can mean substantial dilution, and thus price slides. So the SEC proposed boosting the waiting period to two years. This set off a roar of protest from Wall Street, which fears that such a long period would dampen enthusiasm for Reg S stocks abroad.
Results: SEC officials say they may trim the proposed two-year wait, though it's not clear to what. Wall Streeters say they can live with six months to a year. Lawyer Gary Wolfe, a partner at Seward & Kissel who represents overseas investors, wrote the SEC that six months would deter foreign quick-buck artists."
(Business Week / July 14, 1997 Pg. #4)
------------------------------------
All, The article talks mainly about foreign investors. Does anyone have a link (gov., etc.) with regards to U.S.? If yes please post.
Nice weekend (...and fireworks),
Marty
PS Nicely put, Roberto. |
