The SEC wants to make it easier for small-time investors to get in on companies like Uber or SpaceX – Finance

  • The US Securities and Exchange Commission is considering options that allow retail investors to participate in the collection of funds from private companies, said the editor-in-chief of the Wall Street Journal.
  • Main Street investors are largely excluded from private fundraising for companies such as SpaceX, Uber and Airbnb because of the rules.

Faced with a declining number of publicly traded companies, the US Securities and Exchange Commission investigates ways to provide retail investors with a stake in high-ranking private companies, said the head of the agency in an interview with the Wall Street Journal, published on Thursday.

"Private markets are flooded with capital these days. The question is, who is involved? "Said Jay Clayton, chairman of the US upper regulator, at the event as part of an educational event in Nashville.

Some of the most valuable and widely discussed companies in the world – Ubers, Airbnbs, SpaceXs and WeWorks – raised hundreds of millions of dollars through private transactions, which led to an estimated billions. But since many of them have never or are not yet published on the stock exchange, retail investors largely miss the opportunity to invest in them.

2018 McKinsey Report that in 2017, US $ 448 billion was raised in the US private markets, 15% more than in the previous year. Moreover, 91% of participants with limited participation, which they interviewed, say that private markets provide higher returns than state-owned assets.

In the coming months, the agency plans to release more detailed information on what is called the "release of the concept," but says the details are still pending feedback from the public.

"I think you could move pretty quickly about this," Clayton told the magazine.

Of course, many secret private companies, such as their low-key statuses. Elon Musk sent shock waves through financial markets earlier this month, when a billionaire that has For a long time, they complained about quarterly reporting and disclosure requirements, mulled taking Tesla private.

Recently, Donald Trump also expressed his support for reducing the burden of transparency that is placed on public companies, tweet that he would ask the regulatory authorities to explore the possibility of a six-month report to "provide greater flexibility and save money."

Currently, many private investments are limited to so-called accredited investors, which the SEC defines as those with a net worth of $ 1 million or a two-year annual income of $ 200,000 (or $ 300,000 for pairs).

Read the full interview of the Wall Street magazine with Jay Clayton here.

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