A Nashville-based publishing firm is launching a music stock exchange, offering investors the chance to buy stock in songs and get a cut of royalties.
The company, TweelX, says that it has been buying songs from labels and other publishers, building up a catalogue ranging from Grammy-nominated singer-songwriters to promising up-and-comers.
The firm is then, through its patent-pending platform, issuing stock in these songs to accredited investors, who may receive royalty distributions through online accounts on a quarterly basis or sell their shares.
Chase Tweel, founder and CEO, TweelX, says: "Our music stock platform offers publishers, labels and independent artists a powerful capital-raising solution that simultaneously promotes artist-content and increases exposure."
Selling stock in music publicly has not been allowed in the past under federal securities law, but TweelX is taking advantage of a recent SEC regulation that is part of the Jumpstart Our Business Startups Act.