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SEC focus on creating IPOs has hurdles to overcome

Joe Mont | July 18, 2017

For years, economists, regulators, and investors have struggled with a steady, precipitous decline in public offerings.

Fewer companies proceeding with IPOs means that Main Street investors lose opportunities to be a part of the prosperity that cutting-edge companies offer.

As he settles into his new role as chairman of the Securities and Exchange Commission, Jay Clayton wasted no time tackling the IPO dilemma head on.

Earlier this month, he announced that the Commission will extend a benefit currently offered to emerging growth companies (EGCs) under the JOBS Act to all private companies seeking to issue public shares.

The Division of Corporation Finance will now permit all companies, on a voluntary basis, to submit draft registration statements relating to initial public offerings for review on a non-public basis. The process will be available for IPOs as well as most offerings made in the first year after a company has entered the public reporting... To get the full story, subscribe now.