“Alternative assets” usually refer to investments that fall outside traditional asset classes like exchange-traded securities, bonds, and cash. On Public, alternative assets are securities that represent fractional ownership of assets like art, collectibles, and NFTs.
At Public, alternative assets start with our Alts team sourcing assets from our network of collectors, galleries, and partners. We review hundreds of assets every month and only acquire or find partners for the small percentage we believe have the strongest investment potential.
Once an asset is acquired, it is securely stored (if it is a physical asset) and insured, and we then create a company to hold the asset. With SEC qualification, that company offers securities that represent fractional ownership of the underlying asset. The process is similar for partners.
Shares are typically sold directly to Public members at a fixed price during an “initial offering.” After shares have sold out, we administratively close the asset, a process that typically takes several weeks.
Following the administrative closing, we open the asset for secondary market trading, where Public members can buy and sell shares with one another (typically 9:30 AM to 4:00 PM ET Monday through Friday). Shareholders can earn a potential return either by selling their shares to other Public members or if Public sells the underlying asset through a “buyout.” Investing in alternative assets involves significant risk, and the price of your alternative assets can decrease, potentially to zero.
If you ever have questions, the team is always here for you, so feel free to give us a shout on the app’s Chat or via email at email@example.com.
Brokerage services for US-listed, registered securities available on Public are offered by Open to the Public Investing, Inc., member of FINRA & SIPC, and a wholly-owned subsidiary of Public Holdings, Inc. Brokerage services for alternative investments available on Public are offered by Dalmore Group, LLC, member of FINRA & SIPC. Alternative investments are over-the-counter equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933. Dalmore Group, LLC and Open to the Public Investing, Inc. are not affiliated entities.