An important function performed by Wall Street in the Wall Street system is finding enterprises to securitize.
This is known in the law as underwriting, and in the jargon of finance, as investment banking. Enterprises seeking growth capital engage with investment bankers, who study the enterprise carefully to determine its qualifications as an engine of growth in earnings, assets and share price.
Investment bankers provide attractive new securities to the securities trading markets. Brokers find buyers and sellers for new and existing issues. Specialists act as buyers or sellers of last resort, making a market in a security to guarantee liquidity, but never price. A certain sale at an uncertain price. That is the fundamental promise of the Wall Street system to buyers and sellers of securities. Analysts provide guidance to buyers and sellers about what securities they should buy or sell at what price. Fund Managers, also known as Institutional Investors, make purchase and sale decisions for investors in their funds. Additional analysts provide buy and sell opinions to Fund Managers. Government officials at the state and federal level regulate required and permitted disclosures and communications between issuers and the investing public. Self-regulating agencies regulate actual trading practices.
This system can appear deceptively simple on the surface, but it is extraordinarily complex, when you get to know how it really works.
Nonetheless, an analogous network of connections needs to be developed for superfiduciaries choosing to go evergreen, the Main Street way.
We see this creating an interesting new role for the university, as a fiduciary space where enterprise can go to present its investment case to prospective superfiduciary investors, and where superfiduciaries can go to examine and make choices about investment cases presented by superfiduciaries.