HOUSE BILL WOULD CONSTRICT "PRIVATE" FINANCING MARKET.

Author:Barias, Stephen
Position:ON THE HILL/
 
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The Private Securities Transparency and Reform Act, a draft bill aired in the House Committee on Financial Services in September 2019, would impose additional requirements on private financing offerings in an effort to make them less attractive and to encourage more companies to pursue financing through the public market, such as an initial public offering (IPO).

According to the U.S. Securities & Exchange Commission (SEC), in 2018, public offerings accounted for $1.4 trillion of new capital compared to approximately $2.9 trillion that the SEC has estimated was raised through exempt offering channels. The private market consists of "accredited investors" having in excess of $1 million of assets or an annual income...

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