Does the Secondary Crowdfunding Market Need Analysts?

On May 16th, real crowdfunding can begin.

Investors must hold their shares for 1 year and there will be no liquid secondary market to trade them.

Academics are now suggesting that independent analysts provide coverage for crowdfunded companies to provide some protection for buyers in the secondary market. (Companies will have to file annual, but not quarterly, reports). These analysts would be employed and paid by the portals which would be covered by listing fees paid by the companies which need the money for their operations.

No comment from the SEC.
http://www.wsj.com/articles/the-missing-piece-that-could-hold-back-equity-crowdfunding-1462155373

Advertisements

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, fraud, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s