Saturday, October 22, 2005

Making NYSE with disgruntled members

Recently I posted a survey on the AX Yahoo Finance message board. The aim of this brief questionarre was to try to understand where the nay-sayers (read: those opposing the NYX under its proposed terms) are coming from.

In particular, this survey was directed at "memberunvaunted," a contributing member of the AX message board community. He claims that the NYSE should try to find or make a better deal, and that Mr. Putnam would take a lessor offer if push came to shove.

Today he wrote, "Your survey is difficult to respond to as I believe it is based on a false assumption. Seats have not risen in value because of AX but rather because of the fact that the NYSE is now committed to offering stock in the public markets."

Why then, did a NYSE seat sell for $2.5 million in 1999 when the NYSE was believed to be going public, and this time, with the AX deal was announced, seats sell for ~20% more than they did when they were committed to offering stock in the public markets?

The answer is obvious: It's because of the growth engine that AX represents.

As for surveys based on a false assumption, the one circulating that the WSJ wrote about is based on the assumption that the terms of the NYX deal are not fair. Now there's a screwed up premise!


Anonymous Anonymous said...

Excellent posts - though the lawsuit is still hanging out there - what's the latest?

5:17 PM  

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