The US public stock market has undergone significant changes since its inception. In the early days, anyone could raise funds by selling stocks to the public, often making false promises. This led to a speculative bubble in the 1920s, which ended in a Great Depression. To restore confidence, Congress passed laws regulating public markets.
The Securities Act of 1933 and Exchange Act of 1934 require companies to disclose their business, financial statements, and significant events when selling stock to the general public. However, exceptions exist for private companies that don’t raise funds from the public.
As regulations have evolved, alternative methods for raising capital have emerged. In the 2020s, companies often seek funding directly from influential investors like Masayoshi Son at SoftBank Group Corp., bypassing traditional stock sales and regulatory requirements. This shift reflects changing market dynamics and the growing importance of private investments.
Source: https://www.bloomberg.com/opinion/newsletters/2025-07-02/the-stocks-will-be-tokenized