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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (346844)	8/15/2007 2:41:44 PM
From: TimF	Respond to of 1575417

Nasdaq going private Tomorrow Nasdaq begins to broker private equity into its listed firms. Washington Post story, "Nasdaq gives high rollers a market free of regulation" Any private firm can list on Nasdaq's new platform, which is called the Portal Market, and raise money by selling stock to an elite group of shareholders. These companies would remain private and not have to make public their financial statements or submit to federal regulation, such as the Sarbanes-Oxley corporate accountability law. "One of the problems that business faces in America today is what I would call 'short-termism,' " said Howard S. Marks, chairman of Oaktree Capital, an investment firm that was the first to list on the private market developed by Goldman Sachs called GSTrUE. "There's a lot of expense and complication associated with being a public company today. . . . Now it is possible to gain most of the advantages of being public while sidestepping the disadvantages." The private market, Marks said, shields companies from regulation and from wild swings in their share prices that are caused by a temporary drop in earnings or a bad rumor. In just a few years, Nasdaq officials predict, stock offerings on private markets will far exceed IPOs on public exchanges. -- Blog Review 320 By Netsmith in: Blogosphere • 0 Comment(s) Author Archive It's an obvious development: if being a publically traded company becomes too costly, then a market will spring up for being a privately traded one. The only problem is that legally, only high net worth investors can enter this new NASDAQ market: so the outcome of the regulations is that in order to protect the average investor they must be excluded althogether. adamsmith.org