September 6, 2021
I'm writing to comment and give support to SR-NYSE-2021-45. As a retail investor, a subscription warrant will allow me access to investing in companies that I otherwise wouldn't have access. It would grant me this access without needing to tie up excessive capital prematurely.
This option-model also supports the ability for retail investors to better vet and examine fully a potential transaction before fronting limited capital (compared to large funds and hedge funds that can cast a wide net of millions into various vehicles).
While the SPAC vehicle has given retail investors access to many private companies before they go public. The speculative nature of that vehicle along with limited time to make a deal and sponsor promote costs led to many bad outcomes. Approving SR-NYSE-2021-45 will alleviate many of these concerns while still maintaining retail investors' access to great private companies before they go public. This rule change will protect investors by:
1. Saving opportunity cost of capital
2. Allowing sponsors more time to find a better deal
3. Giving investors the option to commit rather than the right to withdraw having already commuted (less potential for sunk cost/time fallacy)
Please approve this rule change to improve outcomes for investors and foster healthier market dynamics. Thank you.