Entrex Advances Methodologies for Trading Private Company Securities.
Chicago, IL – May 10, 2007 – Entrex, Inc., solidifying their quest to build the first "exchange" where institutional investors can find, research, track, manage and trade interests in private companies launched a supplemental SEC No-Action letter request enhancing perimeters for a Private Equity Securities Trading Platform. The goal is to create a sanctioned marketplace where private equity, and other forms of private securities, can be traded -- outside of traditional exchanges like AMEX, NASDAQ, and LSE.
Relieving institutional investors of two long-standing problems associated with private equity investments, those being inconsistency in the "look and feel" of company securities and a lack of liquidity opportunities offered by private companies, Entrex's proprietary and patent pending model for creating and trading these securities ensures that each is a standardized unit which holds an initial value and rights identical to all others -- regardless of the company they represent.
To the traditional financial community this means that Entrex will be a place to easily invest in and trade bite-sized chunks of potentially very high-yield private company securities-without being involved in the "deal" minutia formerly associated with such transactions.
Entrex's marketplace represents a solution for companies that prefer not to be public or those high-growth middle market companies that couldn't ensure the constant financial following to maintain a rewarding public issuance.
Although the firms offering these securities are outside the mandatory reporting purview of the SEC, all companies in the Entrex Marketplace will submit to a proprietary due diligence process, quarterly financial reporting and third-party ratings and/or valuations -- offering investors the financial transparency they require.
Entrex CEO, Stephen H. Watkins, adds, "It will be apples to apples. Investors will be able to purchase shares of select companies that interest them or shares of an index-type fund representing a basket of diverse companies pre-selected based on specific criteria. We expect these funds could be created around specific industries, high-growth or even geographic location."
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