Braden Perry Discusses Private Securities with U.S. News & World Report
Kennyhertz Perry Attorney Braden Perry was recently featured in a U.S. News & World Report article discussing the pros and cons of investing in private securities.
The article noted that since private placements are not traded on exchanges, an individual placement may be available through one of these sources but not the others.
“Two of the main issues with private placements are their valuation and illiquidity,” Perry said.
Without a liquid market as with listed stocks, investors have a hard time knowing what their shares are worth after the initial purchase.
“Ordinarily, only private data is used for valuation and performance, which means many metrics are not captured.” “In addition, investors may be stuck with their shares for years because there is no market or way to sell until the company is listed, which may never happen. “Most private placements prohibit withdrawals by investors and are rarely allowed to sell their interests,” Perry
To view the entire article please visit U.S. News and World Report.
About Kennyhertz Perry’s Financial Services Practice Group
Kennyhertz Perry integrates broad regulatory expertise, including compliance and enforcement, with the transactional practices to which that expertise is critical. We are called upon by businesses who need help navigating current and future regulatory challenges stemming from the global financial crisis. To assist our clients in understanding the issues that will affect their industries, entities and transactions, we understand the impact of regulations and requirements of both The Dodd-Frank Wall Street Reform and Consumer Protection Act and a wide variety of U.S. and foreign regulatory reforms targeting investment business and market structures, alternative investment fund managers, private equity and others, central clearing and exchange-trading of derivatives, market abuse and insider dealing, capital regimes, and commodity derivatives.
Kennyhertz Perry attorneys also have broad BSA/AML experience across the spectrum of bank and non-bank financial institutions. These include traditional chartered banks, broker-dealers, commodity trading advisors, money transmitters, non-bank lenders, and virtual currency businesses. We are experienced in counseling and drafting BSA/AML practices, policies, and procedures. Our combined knowledge and skill permit us to anticipate potential problems before they become serious issues and assist clients in responding effectively to regulatory and law enforcement criticisms or inquiries.
Kennyhertz Perry regularly counsels lenders, investment advisers, broker-dealers, and fund managers on the laws, rules, and regulatory developments affecting their business, including regulatory requirements, risk management, licensing and registration, sales and marketing practices and materials, manuals and training, day-to-day compliance.
To learn more about Kennyhertz Perry, LLC, please visit kennyhertzperry.com.
*The choice of a lawyer is an important decision and should not be based solely upon advertisements.