In what could be contemplated as a landmark move in pre-IPO stock trading that recalls a return of penny stocks into the mainframe, New York City-headquartered American stock exchange operator Nasdaq Inc had teamed up with leading US lenders likes of Goldman Sachs and Morgan Stanley in a bid to spin off its platform that enables people to cash in on the so-called pre-IPO stocks or private companies.
In point of fact, a cash-flushed US economy coupled with a near-zero interest rate since the onset of pandemic outbreak had prompted investors to seek non-conventional & high-profit margin housings for investment, while Nasdaq’s latest move to launch a separate platform to invest into private entities would likely to be deemed as an utterly lucrative option, said the analysts.
Nasdaq to launch separate platform to trade pre-IPO stocks
On top of that, according to the terms of the deal, Nasdaq Private Market, the newly created entity of which would dwell the trading of pre-IPO stocks, would become an independent and standalone being which would receive investments from a swathe of US lenders such as SVB Financial Group, Citigroup, Morgan Stanley alongside Goldman Sachs, the stock exchange operator had told on Tuesday.
Nonetheless, Nasdaq did not disclose the financial details of the accord, while a long laundry of companies including BlackRock Inc., the world’s largest asset manager alongside JPMorgan Chase & Co among others were reportedly looking to offer their clients a broader access into the Nasdaq’s newly created platform to trade penny stocks.
In tandem, Nasdaq Private Market, founded back in the 2014s, would keep its core operating teams unchanged following the spin-off and continue its presence in San Francisco and New York.