Shutdown in the US is officially completed, but this does not seem to end wars, but only to a temporary truce. The congressional office budget (CBO) has estimated the losses of the American economy due to a temporary suspension of work of the government and the number of public institutions with at least $3 billion S&P Global Ratings twice, 6 billion For comparison: the price for the construction of the wall on the border with Mexico, because of disputes around which happened shutdown, — $5.7 billion is the game Worth the candle, let the estimate economists and politicians, and we try to look at this story in the context of the securitization of the stock market.
Suspension of some U.S. government agencies have an impact not only on the nonpayment of the salaries of local civil servants and employees, but on many areas the us and world economy, including a merger or acquisitions, and carrying out of corporate transactions and IPOs. So, due to the actual blocking of work of the Commission on securities and exchange Commission (SEC) projects that planned to go public in the near future, will be forced to postpone it or to cancel it. In January the figure was at least three is a biotechnology company Gossamer Bio Inc., and Alector Inc., as well as the division of a large investment Fund Blackstone Group under the name Alight Solutions. But on the way to IPO and those superproject as Uber, Lyft and Pinterest.
When you consider that Donald trump and Congress agreed to reopen the government only until 15 February, and disputes, for example, on the budget (who do not go to any comparison with the question of the wall on the border) remain outstanding after February 15, it is possible the second round of the shutdown. And then many companies will arise a reasonable question: if not IPO, then what?
“There is one by-pass loophole: the securities law, adopted in 1933, provides that the application of the company can be automatically approved after 20 days after filing. But it is quite a risky decision, because if then the SEC will have some questions to the project, it could be for him and his investors very adverse consequences, — says the candidate of economic Sciences, head of international PR and business intelligence ICOBox Dima Zaitsev. But there is another solution. In the current situation, a large company gathered at the IPO, it can refocus on a stock market outside the United States. The reason is very simple — opportunities for development and, most importantly, the speed of the running projects, which has value always and everywhere. Since November last year we have seen significant instability and volatility in the stock markets, which many companies were forced to postpone a public offering of its shares on the stock exchanges. Then there was a shutdown in length, 35 days. Ahead — uncertainty. Now imagine what a queue of projects lined up for registration with the SEC after all these events? That is, the IPO market in the best case normally start work by March. And this will not happen if repeated shutdown”.
Important and another point, is not associated with the SEC and shutdown: in recent years, the timing of the preparation of any financial technological or IT-company for the IPO was continually extended: in 1999 it took an average of four years, and now — 11 years. Dima Zaitsev believes that this factor will also help to ensure that the projects will be looking for quick but reliable ways of attracting investments — and here again come to the aid of the stock market with its updated solutions, such as Security Token Offering (STO).
“There are a number of major private projects that have great potential for further development, — continues Dima Zaitsev. — At some point any of them can stand before a choice: to wait a few years and save the profits to then invest it in new development or expansion, or to speed up the process and implement all your business ideas immediately. It is obvious that for the second option need extra money. If earlier the companies had three options to get them is to go for an IPO (stopped because of the shutdown, insanely expensive and not suitable for small and medium businesses) will go to the Bank (there is a huge interest for small loans) or to conduct a private placement, the so-called private placement of securities (possible, but difficult from the point of view of the investor), today, instead of such complicated manipulations they get one for each country and legally controlled decision — Security Token Offering”.
ICOBox experts do not exclude that in the current situation in cryptosphere can leave even the giants such as Facebook, Apple, Amazon, Netflix and Google (parent company Google). You can, of course, try to wait until the stock market stops shaking due to the trade war between the US and China, and work the most important state and financial structures of the USA will no longer be blocked by more than a month for the next shutdown, but the question is, how long will it last and will there be enough market players patience? And most importantly, does it make sense to wait?
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