For 75 years, the rules in this country governing capital formation for high growth enterprises have not changed. There are two categories ... (i) public companies which float equity securities, e.g., common stock in public offerings with shares publicly traded on various exchanges; and (ii) private companies financed by placements to a limited group of investors pursuant to exemptions from federal and state registration requirements, the shares changing hands infrequently until and unless the company goes public.
The division between public companies and private companies is no longer a bright line. A new entrant … HPPOs (hybrid public private companies)… has approved HPPO shares are not listed on the NYSE or NASDAQ but are traded on secondary exchanges. Companies, holding shareholders "of record" to under 2000 (up from 500), can remain HPPOs.
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