July 16, 2020
This ruling would be tremendously detrimental on all levels of investing. But it would hurt stocks with small market caps by far the most, as $3.5 billion is far more than enough to capture gratuitously high amounts of small-cap stocks without investors having any knowledge of this massive institutional ownership. Investors would have no idea that the companies they are investing in have shareholders holding these massive amounts of shares, which would easily allow rampant market manipulation from these shareholders without any investor knowledge or oversight.
Transparency and the public availability of information are of the utmost importance in the stock market today, now more than ever. This loss of transparency would do nothing but hurt millions of investors while allowing the abuse of the system by these large institutional firms.
We shall not stand for this.