Interesting read:
Trading on the Expert Market with restrictions such as "unsolicited quotes only" might seem primarily disadvantageous, but there are specific circumstances, such as during a merger, reverse merger, or buyout, where these conditions could potentially be advantageous or at least have neutral effects for the company involved. Here’s how:
Potential Advantages
1 Control Over Information: In scenarios involving significant corporate actions like mergers or acquisitions, controlling how information is disclosed to the public can be crucial. Being on the Expert Market, where quotations are restricted from public viewing and information release is tightly controlled, could help manage the timing and details of what is released, aligning it strategically with corporate goals.
2 Minimized Speculation: The restricted visibility and trading limitations might reduce speculative trading, which can sometimes lead to unwanted volatility in a company's stock price. In the delicate periods leading up to and during major corporate transitions, stability in the stock price can be beneficial.
3 Focused Investor Base: Since the Expert Market targets professional and institutional investors, companies may find that their stock is being held and handled by investors who have a better understanding of the complexities of mergers and acquisitions. This can lead to more rational pricing adjustments based on the fundamentals of the deal rather than on erratic market sentiment.
4 Ease of Transaction Execution: In some cases, especially during reverse mergers (where a private company merges with a public company primarily for the benefit of becoming publicly traded without undergoing a traditional initial public offering), the existing setup in the Expert Market might facilitate quicker execution of the deal. The professional investor base and the less stringent public disclosure requirements until the deal is finalized can ease the transition.
Potential Disadvantages
1 Limited Market Reaction: One of the challenges remains the limited exposure to a broader market, which can suppress the potential positive market reaction typically seen when public investors favorably view a merger or acquisition.
2 Investor Skepticism: Professional and institutional investors, while sophisticated, may be more critical and cautious, particularly when dealing with companies that have restrictions on their trading. This skepticism could potentially influence the terms of the deal unfavorably for existing shareholders.
3 Compliance and Legal Risks: Navigating the complexities of a merger or acquisition while on the Expert Market, especially under conditions like unsolicited quotes only, requires careful legal and compliance considerations. Missteps in this area could lead to significant regulatory or legal repercussions.
There is nothing better than the middle finger emoji
