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Clean Up Rule 144AClean Up Rule 144A
On April 30, 1990, the Securities and Exchange Commission implemented Rule 144A, which it viewed as the first step toward achieving a more liquid and efficient institutional resale market for unregistered securities.1 The rule enabled less-than-investment grade companies to issue, without prior SEC review, both straight and convertible debt as well as preferred stock. All the parties involved in the
July 1, 2004
Michael Lewitt, president, Harch Capital Management, Inc., Boca Raton, Fla.
On April 30, 1990, the Securities and Exchange Commission implemented Rule 144A, which it viewed as “the first step toward achieving a more liquid and efficient institutional resale market for unregistered securities.”1 The rule enabled less-than-investment grade companies to issue, without prior SEC review, both straight and convertible debt as well as preferred stock. All the parties involved in the markets — investors, underwriters, issuers and regulators — viewed Rule 144A as a tremendous step forward for financial markets. It would enable companies to come to market faster, which would allow them to time the market to obtain the best terms; in turn, investors...
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