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On to the Senate: Bipartisan Huizenga Legislation to Improve IPO Research, Help Small Businesses "Go Public" Passes House

Washington, July 10, 2018

Today, House Capital Markets, Securities, and Investment Subcommittee Chairman Bill Huizenga (MI-02) released the following statement after the House passed H.R. 6139, the Improving Investment Research for Small and Emerging Issuers Act. This bipartisan legislation, introduced by Congressman Huizenga, would improve initial public offering (IPO) research and help smaller businesses become publicly traded companies. H.R. 6139 passed the House by voice vote.

“We need to ensure that our capital markets are open for innovators and job creators of all sizes. A key part of that is working to right-size regulations for smaller companies looking to go public. Over the past two decades, our nation has experienced a 37% decline in the number of publicly traded companies. Many small and emerging growth companies are choosing to go public much later in their lifecycle with some choosing not to go public at all. We must work to change this trajectory, which is why I introduced H.R. 6139, the Improving Investment Research for Small and Emerging Issuers Act."

"Few investment banks have published any pre-IPO research since passage of the JOBS Act, and research coverage in general on small issuers continues to be an issue. Little to no research coverage generally corresponds with lower stock liquidity, and reduced research coverage may be particularly disadvantageous to individual investors who have limited research capabilities on their own. This bipartisan legislation would provide a roadmap for how to increase this important research, create new opportunities for Main Street investors, and help smaller companies go public."

"H.R. 6139 would accomplish this by requiring the SEC to study and identify the regulatory roadblocks currently preventing emerging growth companies and small businesses from obtaining research coverage. The Senate should take this incredibly bipartisan bill up quickly to ensure the United States maintains the most liquid and competitive markets in the world.”

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