Holiday Bell: 12.23.20
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Dec 23, 2020
SEC kills IPOs; Trump temper-tantrum; Apple rejected Tesla; garbage company rejects Nikola; and more!
The Securities and Exchange Commission announced Tuesday that it had approved an NYSE Group Inc. plan for so-called primary direct listings. The change marks a major departure from traditional IPOs, in which companies rely on investment banks to guide their share sales and stock is allocated to institutional investors the night before it starts trading. Instead, companies will now be able to sell shares directly on the exchange to raise capital something that’s not been previously been allowed….
The SEC sign-off of NYSE’s plan follows months of wrangling, including a decision made earlier this year to halt consideration of the proposal at the request of the Council for Institutional Investors, a group that represents major pension funds and endowments. CII had argued that the plan eroded investor protections and might make if m