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hi ghchua,
Like I said, I agree with the paper in theory but not in practice.
I know the current rules are not perfect. And do desire changes, which had been happening in the right direction to continue, but not necessarily in the authors' desired manner. For example, I welcome the 2 stage delisting loophole. Why? Simply because it allows the flexibility for "specu-invest" on the next delisting possibility.
As for the "strict restoration of free float", I disagree as well. OPMIs have plenty of time after suspension (3 months IIRC) to send in their acceptances if they can't tolerate holding a suspended or delisted company. I believe plenty of VBs earned their illiquidity premiums only after enduring the illiquidity. There are a thing called illiquidity premium only because there are a thing called illiquidity risk.
The irony is as an OPMI, I know I am prey in the jungle and accept that predators have their advantage. There are opportunities to stay in the zoo, if I do not wish to play according to the rules of the jungle OR accept that I can't survive as prey. End of the day, our mileage all varies across this diverse group.
Like I said, I agree with the paper in theory but not in practice.
I know the current rules are not perfect. And do desire changes, which had been happening in the right direction to continue, but not necessarily in the authors' desired manner. For example, I welcome the 2 stage delisting loophole. Why? Simply because it allows the flexibility for "specu-invest" on the next delisting possibility.
As for the "strict restoration of free float", I disagree as well. OPMIs have plenty of time after suspension (3 months IIRC) to send in their acceptances if they can't tolerate holding a suspended or delisted company. I believe plenty of VBs earned their illiquidity premiums only after enduring the illiquidity. There are a thing called illiquidity premium only because there are a thing called illiquidity risk.
The irony is as an OPMI, I know I am prey in the jungle and accept that predators have their advantage. There are opportunities to stay in the zoo, if I do not wish to play according to the rules of the jungle OR accept that I can't survive as prey. End of the day, our mileage all varies across this diverse group.