H.R.3395 - Middle Market IPO Cost Act (119th Congress)
Summary
H.R. 3395, the Middle Market IPO Cost Act, directs the Comptroller General to study the costs that small- and medium-sized companies face when undertaking initial public offerings (IPOs). The study will involve consultation with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The goal is to analyze the direct and indirect costs, compare them to alternative financing, and assess the impact on capital formation and retail investors.
Expected Effects
The bill's primary effect will be the creation of a comprehensive report on IPO costs for smaller companies. This report could inform future policy decisions aimed at making public markets more accessible. Ultimately, this may lead to legislative or administrative actions to reduce the barriers for middle-market companies seeking to go public.
Potential Benefits
- Provides data-driven insights into IPO costs for small and medium-sized businesses.
- May lead to policy changes that encourage capital formation.
- Could increase the availability of public securities from smaller companies for retail investors.
- Informs Congress on the impact of IPO costs on business decisions.
- Could streamline the IPO process, reducing costs and regulatory burdens.
Most Benefited Areas:
Potential Disadvantages
- The study itself incurs costs to taxpayers.
- The report's recommendations may not be implemented.
- Potential for the study to be biased or incomplete.
- No immediate impact on businesses or investors; the bill only mandates a study.
- The study might reveal complexities that discourage further action.
Constitutional Alignment
The bill aligns with the constitutional role of Congress to regulate commerce (Article I, Section 8). By studying the costs associated with IPOs, Congress is gathering information to potentially improve market efficiency and capital formation. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).