Matt Levine’s Money Stuff: Predicting Is the New Public Market (Correct)

Private predictions

In the 1930s, the problem with US stock markets was that investors didn’t get enough information. The solution was new rules that created the US Securities and Exchange Commission and required companies to disclose various information — audited financial statements, updates on material events, etc. — if they wanted to sell stock to the general public. Companies that didn’t want to raise money from the general public didn’t really have to disclose anything, but the general public had most of the money, so most companies that wanted to get big had to go public and disclose the required information.

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