The Security Traders Association (STA) appreciates the opportunity to provide comments on legislative proposals in advance of the February 28, 2019, Senate Committee on Banking, Housing, and Urban Affairs hearing on “Legislative Proposals on Capital Formation and Corporate Governance.” The STA comments are focused on the following provisions in S.488, the JOBS and Investor Confidence Act of 2018, as passed by the House in the 115th Congress:
- Title IX, Encouraging Public Offerings (including similar companion legislation, S.2347, the “Encouraging Public Offerings Act” introduced in the 115th Congress);
- Title XX, Main Street Growth (including companion legislation, S.3723 and H.R. 5877, the “Main Street Growth Act,” introduced in the 115th Congress);
- Title XXIV, Improving Investment Research for Small and Emerging Issuers (including H.R. 6139 and S.3578, introduced in the 115th Congress); and,
- Title XVIII, Options Markets Stability (including S.3283 and H.R. 5749, introduced in the 115th Congress).
Encouraging Public Offerings
Prior to the enactment of the Jumpstart Our Business Startups Act (JOBS Act), companies conducting public offerings could only meet with potential investors in time constrained meetings in the ten (10) days leading up to their IPO. This roadshow process did not allow sufficient time for issuers to provide a full description of their business model or for investors to properly research the company prior to investing. The JOBS
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