Athlete IPOs: Good For Players, Risky For Investors

Law360, New York (February 19, 2014, 12:54 PM EST) -- In October 2013, Fantex Inc., a startup company based in San Francisco, announced a new trading exchange for investors to buy and sell interests in professional athletes, allowing investors to take a stake in a professional athlete’s future earnings.

Fantex registered an initial public offering of 1,055,000 shares at $10 per share of Houston Texans running back Arian Foster — the first athlete IPO — with the U.S. Securities and Exchange Commission in October 2013, and then registered an IPO of 421,100 shares at $10 per...
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