I was at a crowdfunding seminar yesterday.
My take-away is that while many companies NOT in the public markets can now use, easily, the disruptive crowndfunding model to raise funds public companies must jump through a series of regulatory hoops. These same regulatory bodies who have also allowed / created a mix of trading rules and conditions that are toxic to junior companies.
These public market companies are at the mercy of deleterious changes to the rules on shorting and the hell-fire realm of high-frequency trading which is so inappropriate for low volume trading. These 'conditions' are plain and simply toxic.
Private companies, start-ups and other organizations have this new source of public capital without the obstacles of multiple costs and regulations of the market operators. Instead they can raise money directly from anyone who likes the idea or product or service being offered for financial support to anyone interested.
Junior equities and start-ups are the roots of the public market system and this level of the equity system is being destroyed. For me the simple conclusion is that that whole system is under attack from the 'owners' of that system, the investors who seem loath to return while the toxic situation continues AND this new form of participation in the emerging level of wealth creation.
So sad but perhaps necessary in order to rearrange the order of control and power in the financial world which was present (maybe not really) and generated the conditions for the 2008 collapse.
PS—I will be attending the TSX HFT (high-frequency trading) seminar on Monday so you can expect more on this topic on Tuesday. G