- Copyright Page
- The Law and Economics of the Going-Public Decision
- IPO Regulators Gone Wild
- Determinants of Variation in IPO Underpricing
- IPO Valuation: The International Evidence
- Survey and Synthesis of the IPO Underpricing Literature: The Fixed-Offer Price Constraint as a Unifying Core Explanation
- IPO Market Conditions and Timing over the Long Run
- The Interplay of IPO and M&A Markets: The Many Ways That One Affects the Other
- Lower Visibility Platforms Serving as Stepping Stones to National Stock Exchanges: The Case of Shell Reverse Mergers
- Going Public in China: Reverse Mergers versus IPOs on Chinese Markets
- Specified Purpose Acquisition Company IPOs
- The Impact of IPOs’ Analyst Coverage on the Choice and Timing of SEOs: A Survival Analysis
- Auditor Selection and IPO Underpricing
- The Structure and Role of the Underwriting Syndicate
- Venture Capital and Financial Reporting in Newly Public Firms
- The Dark Side of Venture Capital Syndication and IPO Firm Performance: The Impact of Different Institutional Environments
- All Ties Are Not Created Equal: Institutional Equity Ties, IPO Performance, and Market Growth of New Ventures
- Is Exchange Regulation Effective for Junior Public Equity Markets?
- Corporate Governance in European IPOs
- Survival of Initial Public Offerings on Europe’s New Stock Markets
- Initial Public Offerings in Germany between 1997 and 2015
- The Underpricing of Initial Public Offerings and Private Placements of Equity in China
- IPOs in New Zealand: An Analysis of Benchmark-Adjusted Performance
- Initial Public Offerings in Hong Kong
- The Admission and Regulation of Overseas Issuers: A Survey of the Top Four Financial Centers
- IPOs in a Major Emerging Market Economy—India
- Private Capital Marketplaces and IPOs
- Crowdfunding: Business and Regulatory Perspective
- Regulatory Arbitrage in Cross-Border Crowdfunding
Abstract and Keywords
The possibility of issuance and resale of private securities was originally introduced in the United States by the Securities Act of 1933 but the nature of such securities made their trades costly and extremely rare. Over last few years, a series of regulatory changes has progressively made the trade of private securities issued by young companies easier and more efficient. This chapter notes that in this framework, and especially in response to the sharp decline in initial public offerings (IPOs) during the financial crisis, two ventures (namely SecondMarket and SharesPost) were pioneers in launching online exchanges for secondary, private securities. While not all start-ups are able to use such platforms to enhance their liquidity, the more mature ones—those that would have probably gone public otherwise—have generated enough trades to partly solve their financing needs. The emergence of private capital marketplaces raises several theoretical and empirical issues.
Saman Adhami is Teaching Assistant at Bocconi University.
Gianfranco Gianfrate is Giorgio Ruffolo Fellow at Harvard Kennedy School, John F. Kennedy School of Government.
Giuseppe Soda is Full Professor of Organization Theory and Design and Network Analysis at the Department of Management and Technology, Bocconi University.
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