U.S. approves NYSE listing plan to cut out Wall Street middlemen
source link: https://www.reuters.com/article/us-usa-sec-nyse/u-s-approves-nyse-listing-plan-to-cut-out-wall-street-middlemen-idUSKBN28W2D4
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
U.S. approves NYSE listing plan to cut out Wall Street middlemen
2 Min Read
WASHINGTON (Reuters) - Companies may go public on the New York Stock Exchange without forking out fat fees to Wall Street banks which typically underwrite such capital raisings, the U.S. securities regulator said on Tuesday.
The Securities and Exchange Commission approval of the NYSE’s “direct” listing plan threatens to overhaul the U.S. initial public offering market, by allowing aspiring public companies to sell shares directly to investors.
Advertisement
Investment banks have for decades organized IPOs, marketed them to institutions, and supported the stock via their trading desks.
The change, following months of industry haggling, will help reduce what critics call excessive underwriter fees, a major barrier to companies looking to go public. Investor groups, however, warned it could diminish their protections as the banks perform due diligence on the companies.
Advertisement
“The Commission finds that the Exchange’s proposal will facilitate the orderly distribution and trading of shares, as well as foster competition,” the SEC wrote in a Tuesday notice.
The plan was designed to “prevent fraudulent and manipulative acts and practices and to protect investors and the public interest,” it added.
Editing by Michelle Price and Richard Chang
Our Standards: The Thomson Reuters Trust Principles.
More From Reuters
Recommend
-
10
comically bad shipping estimates and middlemenMy inverter has unfortunately died, and I wanted to replace it with the same model. Ideally before I lose the contents of the fridge. It's a 24v inverter, which is not at all as easy to find a rep...
-
16
December 18, 2020
-
11
SEC approves plan to allow more direct listings on NYSE The new system will enable tech companies and other startups to raise capital through direct listings
-
8
@MarkHelfmanMarkEditor, Crypto is Easy newsletter. #1 writer, Medium. Bitcoin author, analyst, commentator.
-
11
This One Chart Shocks Wall Street – TrustnodesWall Street is abuzz with a chart comparing the performance of bitcoin and gold over the past two years. Gold was rising until March 2020 with bitcoin not moving. Gold then peaks in Augu...
-
9
SpaceX's Satellite Internet Shuts Down Because It's Too Hot in ArizonaAn engineer tells Motherboard that Starlink “Dishy McFlatface” broadband satellite dishes will likely need better heat-management systems be...
-
16
July 1, 2021 ...
-
13
Memestocks for the Masses & the Redistribution of Wall Street WealthJuly 14th 2021 394 reads8
-
5
Reading Wall Street Tea Leaves on 5G, Metro, and the Edge Wall Street has credible reasons to believe that O-RAN is going to end the dominance of the big mobile network equipment vendors, and it may re-jiggle the vendors’ ranking too...
-
8
SEC Proposes Rules That Would Squeeze Stock-Market MiddlemenAgency is formally considering biggest overhaul of stock-market structure since mid-2000s
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK