State Stox Exchange

Full recovery from the pandemic will take years unless there is a mechanism for restoring equity that SMEs lost. State Stox is a private sector solution to a macro-economic problem that is especially important to recovery in states like New York.

State Stox is the only trading firm supporting businesses in states and local communities. State Stox succeeds because it provides unique value to both investors and to companies.

Investors want to invest in their local community and in their state. They want to support local business but there was no ready way to do it, until State Stox.

Small and mid-sized enterprises (SME’s) compete for capital with the large companies, but SMEs are at a disadvantage because large companies can provide investors liquidity in the secondary market. Economists have long been aware of this liquidity disparity and its adverse impact on SMEs but there was no viable solution, until State Stox.

The interest of the State, investors and companies converged during the pandemic. State tax revenue drops when business payroll taxes and sales taxes are reduced. Further, communities realized the importance of local restaurants and other businesses.

Over $90 Billion of equity capital was depleted from US companies during the pandemic, about $23 Billion just in New York companies, based on data reported by Bloomberg News. Hardest hit were SMEs. Most SMEs have enterprise values of less than $300 million. SMEs also have the greatest challenges in raising equity capital.

Federal and state government provided assistance to businesses during the pandemic, but the assistance was almost entirely debt. A business cannot thrive on debt capital – it needs equity capital. Ask any business owner. Proof is in the data. Over 500,000 US companies went out of business, despite Government loan assistance programs. Governments have the infrastructure to provide debt funding but not equity funding.