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Comment by H8crilA | Hacker News Reader

What's the difference between this and NYSE? The same regulatory regime applies, the only difference could possibly be in what the exchange does/requires in addition to the regulatory requirements.

For example you still need an S-1 or you'd be committing the most obvious of securities violations under the 1934 Securities Exchange Act.

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A private exchange for rich people and established financial firms means no public filing.

That limits the cost of raising capital for the companies listed as they don’t have the same regulatory requirements for publishing financials.

The problem is that most private companies are terrible or they are on track to becoming public. The companies that aren’t terrible and start out on here will likely go public at some point and outgrow this.

If you are an accredited investor and want pre-public secondaries this will be a way to do it.

There's so many companies that aren't terrible and aren't planning on going public, you just aren't aware of them.

Which is kind of their point. This is for those with insider knowledge.

Many firms prefer to stay private because being listed publically has advantages but has many downsides.

You usually go public to raise money. Going public also costs money and changes your focus and gives away information to competitors.

But what about employees? Those would not be considered "rich people", so how can they operate on this market, as described in TFA, without infringing?

Poor people supposed to stay poor and not have too much upside, thats why accredited investor rules.

This also limits their downside.

They can participate as sellers, but not buyers, similarly to other secondary markets.

If there were a way to access liquidity without going near Wall St, I’d take it in a heartbeat.

Uh? The most obvious violation? The point of these is to reduce the s1 need etc in part

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