US Stock Market Move | Forge Global (FRGE.US) surged 66% in pre-market trading, receiving a $660 million investment from Charles Schwab (SCHW.US) for acquisition.

On Thursday, Jiaxing Wealth Management (SCHW.US) agreed to acquire private stock trading platform Forge Global (FRGE.US) for $45 per share, with the deal valued at $660 million. Following the announcement, Forge Global surged by 66.54% in pre-market trading on Thursday, reaching $43.5 per share. The two companies expect the transaction to be completed in the first half of 2026. As Wall Street firms strive to meet investors' demand for access to high-growth startups, such transactions are becoming increasingly common. Large Financial Institutions, Inc. are expanding their services to provide clients with access to private companies and pre-IPO stock liquidity, aiming to capitalize on the growing demand from investors to early-stage high-growth startups. Some of the world's most valuable startups choose to remain private, raising funds through the private markets rather than seeking an initial public offering. Companies like ChatGPT provider OpenAI, Elon Musk's SpaceX, and TikTok's parent company ByteDance are now valued at or above the valuations of several large S&P 500 index components, narrowing the gap in influence between the public and private markets. Investors are seeking to invest in these rapidly growing companies, and financial service companies are striving to meet this demand. Last month, Wall Street giant Morgan Stanley (MS.US) agreed to acquire private equity trading platform EquityZen, a competitor of Forge Global. Forge Global went public through a blank-check company in 2021. Earlier this year, its stock rose by 87% due to reports that the company was exploring a sale and had received acquisition proposals. The company operates a trading platform, where investors have bought and sold over $170 billion in privately held company stocks. On the other hand, Jiaxing Wealth Management is a traditional brokerage firm that offers clients wealth management, securities brokerage, banking, and financial advisory services. It has a market capitalization of around $170 billion and manages approximately $11.6 trillion in client assets.