The Survival of Small to Medium Companies
Securities trading products are more needed at this time for the survival of small and medium-sized companies than at any period in history.
Because of the consolidation of commercial banking with investment banking and greatly reduced public liquidity available to small and medium-sized enterprises, small business transactions now have nearly exclusive dependence on venture capital and private equity firms. The necessity for a public market with fast evaluation of opportunities and speed to transaction and liquidity is more in demand than ever before. The standardization of private investment trading products creates value to equity investors, be they venture capitalists, private equity investors, market-making traders, trading speculators and even company owners. All invested stakeholders benefit from a public market with reduced transaction costs and optimization of the liquidity and value of shares in a public market.
Since 2000, small and medium private companies have experienced a decline in the ability to effectively utilize public market alternatives for growth, working capital and especially for the financing of exit strategies. This decline in available transactions has created a necessity to expand the reach of all market participants whether they are buyers, sellers, investors or intermediaries.