This preview shows page 1. Sign up to view the full content.
Unformatted text preview: This allowed large investors to begin
trading these privately placed securities among themselves even though, in general,
privately placed securities do not satisfy the stringent disclosure and informational requirements imposed by the SEC on approved publicly registered issues. While the
SEC defined the large investors able to trade privately placed securities as those with
assets of $100 million or more—which excludes all but the very wealthiest household
savers—it is reasonable to ask how long this size restriction will stay in effect. As they
get more sophisticated and the costs of information acquisition fall, smaller savers will
increasingly demand access to the private placement market. In such a world, savers
would have a choice not only between the secondary securities from FIs and the primary securities publicly offered by corporations but also between publicly offered
(registered) securities and privately offered (unregistered) securities.23 The recent
growth of the 144A Private...
View Full Document
This document was uploaded on 03/09/2014 for the course ACC 301 at HELP University.
- Spring '09