In January and February of 2021, as the world continued to struggle through the COVID-19 pandemic, the United States’ stock market experienced its own unprecedented event. A group of retail investors who were active participants on r/wallstreetbets, a thread on the social networking website Reddit, became aware that several large hedge funds held extreme short…
Tag: Securities
Help or a Hindrance: Long-running Debate over Dual-class Stock Continues
It’s a question almost as old as the stock market: should public corporations be able to use a dual-class share structure that preserves a key shareholder’s influence. A number of well-known companies including Ford Motor Company, Facebook and News Corp. maintain dual-class structures that grant outsized voting power to one person or a small number…
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…
Where are the Funding Portals?
Regulation Crowdfunding, promulgated under Title III of the JOBS Act, is a relatively new method companies can use to raise capital.1 Reminiscent of donation-based crowdfunding platforms such as Kickstarter, Regulation Crowdfunding permits companies to raise up to $1 million through either a funding portal or broker-dealer from a wide range of investors, including non-accredited investors.2…