Bipartisan legislation recently introduced in the U.S. House of Representatives would amend the Securities Act of 1933.
The Securities Research Modernization Act would ensure businesses have better visibility, draw more investor interest, and have a greater chance of a successful public offering. Currently many small and mid-sized businesses are excluded from research coverage during the IPO process.
U.S. Reps. Cleo Fields (D-LA) and Roger Williams (R-TX) introduced the bill.
“This bill is about giving hardworking Americans a fair shot at making smart investments,” Fields said. “By allowing research on all companies planning to go public — not just the big ones—we’re putting more information in the hands of everyday folks. This legislation helps our small businesses get noticed when they’re ready to grow and creates more opportunities in communities that have been overlooked.”
“Access to capital remains a top issue for small businesses across America,” Williams said. “Research reports are critical tools that help companies attract investors and improve transparency in the market, but many small and mid-sized businesses are excluded from research coverage during the public offering process. We must level the playing field to ensure all businesses can compete. My bill ensures investors have access to independent analysis, making the market more transparent, efficient, and prosperous for Main Street.”