Nasdaq Inc. is partnering with a group of banks, including Goldman Sachs Group Inc. and Morgan Stanley, to drag out its marketplace for shares of private firms.
- The deal could increase transactions to Nasdaq Private Market, the New York-based exchange operator’s trading site for shares of private companies yet to issue an IPO.
- Trading in pre-IPO shares has fired up in recent years as startups have made an effort to list. Employees of such startups try to raise cash from their shares.
- Under the agreement, Nasdaq Private Market will be shifted into a separate, independent company that will obtain investments from a group of banks.
- Individual investors are not allowed to purchase shares on Nasdaq Private Market. Under the current regulations, such arrangements are restricted to accredited investors, having a net worth of over $1 million.
Nasdaq is betting the bank deal will make the Nasdaq Private Market the dominant platform for trading pre-IPO shares.
NDAQ up +2.76%, GS up +2.42%, MS up +3.95%Source: The Wall Street Journal