Equity Stock Transfer, LLC, has issued a statement on the NewsMax IPO, which saw its shares traded on the New York Stock Exchange (NYSE). NewsMax, a more conservative news service that has been rising in the ratings, recently issued shares to investors under Reg D and Reg A. The Reg A exemption allows retail participation in the private securities offering.
Equity Stock Transfer is an SEC registered transfer agent which enables the transfer of shares. The company reported that it is processing almost 25,000 separate transactions for shareholders using the DRS (the direct registration system) of the Depository Trust Company (DTC).
Equity Stock Transfer noted that the Newsmax IPO is the first Reg A+ offering listed on the NYSE.
Equity Stock Transfer stated that it was able to process the shares via its relationship with Vinyl Equity using custom systems software jointly developed to service large private offerings, which utilize general solicitation and advertising for investors as allowed under the Jobs Act and Regulation D under the Securities Act of 1933.
Mohit Bhansali, CEO and co-founder of Equity Stock Transfer, said that along with the growth of digital news, they are experiencing an era of digital transformation in private securities offerings.
“We would have been unable to achieve our goals without the support of the dedicated team at Vinyl Equity and we are thrilled to also be the first transfer agent newly admitted to the “big board” as a New York Stock Exchange authorized transfer agent for Newsmax”.
Equity Stock Transfer added that the modernization of IPOs and secondary trading has lagged behind demand.
“…the long delays in the movement of securities to brokers so that they may be sold in a rising market is a top agenda item but is often secondary to brokerages who do not prioritize or devote adequate resources to this important step for securities purchased privately, outside the brokerages. Lack of attention, lack of commissions and fees for the broker hurts small and individual investors when seeking deposit and liquidity for their private investments. This is an area in need of immediate regulatory reform to support further democratization of capital formation in private markets, which Equity Stock Transfer and its partners are firmly committed to achieve.”
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