However, unlike other stock markets where listed companies are public and subject to federal regulation, those that list on the Portal Market will remain private. The market is set to open with 500 listings.
This comes at a time when private equity firms are making it difficult for mutual funds and other institutional investors because the private equity firms are taking public companies private. In fact, more money, $162 billion, was spent on acquisitions by private equity firms last year than on initial public offerings on Nasdaq, the
“One of the problems that business faces in America today is what I would call ‘short-termism,’” said Howard S. Marks, chairman of
Nasdaq predicts that within only a few years, initial private offerings will by far exceed initial public offerings. “It’s a transformational development in the capital markets,” said John Jacobs, executive vice president at Nasdaq.