Key Highlights

[00:01 – 09:30] The Shrinkage of the Number of Public Companies

• The market for special purpose acquisition companies (SPACs) has exploded in recent years, with a record number of companies going public.
• When the SPAC finds a merger partner and acquisition target, there is no need for disclosure since it is regulated under the merger laws rather than the IPO laws.
• There is a trend of private companies staying private longer, and this is due to the size of private equity today.

[09:31 – 20:33] SEC Updates Rules for Accredited Investors in Pre-IPO Arrangements

• Under the Investment Company Act of 1940, mutual funds can invest up to 15% in private companies.
• There is liquidity available for employees without going public because people in that private equity venture capital space are anxious to get shares before that IPO event.
• 13.1 million Americans have credit card debt, and they hold the vast majority of the wealth in the U.S. today
• There has been poor performance for SPACs since their inception, with many companies trading below their initial price.

[20:34 – 41:54] Alternative Investments: What to Look for When Trading These Cryptocurrencies

• Crypto is very similar to the dot-com bubble of the late 1990s, with prices going up rapidly and then crashing
• There is no scarcity in the crypto world, and the value of these assets is not based on real companies or anything tangible.
• Inflation is a concern for some people due to the high rates of inflation in some countries.
• Cryptocurrencies may be better suited to handle inflation than traditional assets.
• Bitcoin and other cryptocurrencies may hold their value better in an inflationary environment than fiat currencies.

[41:55 – 43:37] Closing Segment

• It’s always great to have a knowledgeable financial expert by your side.