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@HideNotSlide

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Helping investors become smarter & more informed about exchanges.

LOST IN THE CITADEL SECURITIES
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    1. Ben Hunt‏Verified account @EpsilonTheory 27 Aug 2020

      Ben Hunt Retweeted Stacey Cunningham

      Can we stop calling them “capital markets”? This SEC decision puts the last nail in the coffin of the historical purpose of public markets: a place where investors channel capital to companies that need capital. It’s all just a casino now. Common stock is just a chip.https://twitter.com/stacey_cunning/status/1298768176101109763 …

      Ben Hunt added,

      Stacey CunninghamVerified account @stacey_cunning
      Big development in capital markets! The SEC has granted approval for @nyse to list companies interested in raising primary capital priced by the market via an NYSE Direct Listing. https://twitter.com/NYSE/status/1298756163396341763 …
      17 replies 80 retweets 398 likes
      Show this thread
    2. Hide Not Slide‏ @HideNotSlide 27 Aug 2020
      Replying to @EpsilonTheory

      Can you elaborate on how direct listings push "capital markets" further into casino territory? Appreciate your views as always.

      4 replies 0 retweets 4 likes
    3. Ben Hunt‏Verified account @EpsilonTheory 27 Aug 2020
      Replying to @HideNotSlide

      The company is not raising capital in a direct listing. Private shareholders in the company are selling their shares directly to you, typically the shares that do not have voting rights.

      1 reply 1 retweet 17 likes
    4. Hide Not Slide‏ @HideNotSlide 27 Aug 2020
      Replying to @EpsilonTheory

      Thanks for your thoughts. We'll see whether companies that go public via direct listing have lower returns relative to traditional IPOs. That would separate the "I need to dump my shares" crowd from the "I actually want to raise capital" crowd.

      1 reply 0 retweets 1 like
    5. Ben Hunt‏Verified account @EpsilonTheory 27 Aug 2020
      Replying to @HideNotSlide

      Sorry, but you’re missing the point. There’s no “dumping” of shares by insiders. They maintain the control shares and issue a bullshit class of common shares in a private offering to themselves, which they then (partially) float to the public. It’s a liquidity scheme. Period.

      4 replies 0 retweets 18 likes
      Hide Not Slide‏ @HideNotSlide 27 Aug 2020
      Replying to @EpsilonTheory

      Got it. Thanks for clarifying. Even worse than I thought...

      6:41 AM - 27 Aug 2020
      0 replies 0 retweets 0 likes

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