Dual class stock structures have become increasingly popular in the last couple of years. Initial public offerings that feature dual-class stock structures have risen from 4 percent in 2009 to 14 percent in 2018.1 However, their increased usage has also brought on a new wave of skepticism and oversight. This post examines the arguments for…
Tag: Securities and Exchange Commission
Security Regulations: When in Rome, Use a Trebuchet
Thanks to the meticulous work of Pythagoras, humans have known for two and half millennia that a line is the shortest distance between two points.1 Despite this knowledge and a general desire for efficiency, societies have often failed to incorporate this principle into systems. Take, for example, last century BC Rome, home of the milliarium…
The SEC, Cybersecurity, and Voya
Introduction According to Javelin Strategy & Research, in 2017, there were 16.7 million victims of identity fraud and $16.8 billion was stolen.1 Even more shockingly, “30 percent of U.S. consumers were notified of a data breach last year.”2 With another large company being hacked seemingly every week,3 the SEC is feeling the pressure to do…
Corporate Social Media Policies: Elon Musk & The Risk of Failure
It should come as no great shock that platforms such as Twitter, Facebook, and Instagram offer organizations low-cost avenues to reach customers. The advertising upside of reaching the 2.9 billion active users of Facebook and 1 billion active users of Instagram is obvious.1 Unsurprisingly, major businesses have caught on to this fact as at least…
Banks and Trusted Contacts: Fighting Back Against Elder Financial Exploitation
Elder financial exploitation has been called “the crime of the 21st Century.”1 The Consumer Financial Protection Bureau (CFPB) defines elder financial exploitation as the “illegal or improper use of an older person’s funds, property or assets.”2 It is a serious issue with severe consequences for older Americans, as valuations of annual losses range from $2.9…
SEC Begins Evaluation of NYSE Proposal to List Bitcoin ETFs
In March 2018, the U.S. Securities and Exchange Commission (“SEC”) announced that it will begin proceedings to determine whether it will permit a NYSE Arca rule change proposal to list and trade two bitcoin-related exchange traded funds (ETFs). 1 In its review, the SEC will seek to determine the rule’s consistency with the Securities Exchange Act…
Both Valuable and Troubling: Virtual Annual Shareholder Meetings
When thinking of annual shareholder meetings, one may be tempted to think of lavish, fun-filled annual get-togethers like the type Berkshire Hathaway puts together.1 But in reality, most annual meetings are not nearly as exciting or glamorous.2 That is not to say, though, that they are not important. Annual shareholder meetings are valuable for a…
Where are the Funding Portals? (Part 2)
In the previous blog post, I detailed the reasons behind why there haven’t been very many funding portals.1 This blog post will propose an idea that would allow many more companies to register as funding portals. This would hopefully allow small companies more access to regulation crowdfunding offerings, and place the number of funding portals…
Regulatory Responses to the Rise of ICOs
Ten years ago the cryptocurrency market did not exist and blockchain technology was unknown to the world.1 As of the date of writing, the total cryptocurrency market cap stands at $364.5 billion and there are over 1,515 different cryptocurrencies.2 The growth in cryptocurrency markets is “without a doubt one of the fastest explosions of wealth…
Imposing Market Maker Obligations on Liquidity Providers
The historical practice of stock exchanges providing specialists started on the floor of the New York Stock Exchange in 1872.1 Up through the twentieth century, these specialists operated as market makers, ensuring market participants had timely and fair access to trades.2 The specialists had an affirmative obligation, in good times and in bad, to provide liquidity…