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house Bill H.R. 2357

Simplifying the Registration Process for Companies Offering Stock

Argument in favor

The proposed requirements should make the process of registering stock with the SEC a little less burdensome, which will give more companies access to the capital they need to grow.

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09/05/2016
This is a step towards allowing a true unregulated free market, and will help small businesses attain the capital they need to succeed.
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Betsy's Opinion
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09/08/2016
Seems to me this would help smaller companies as well as larger. Less regulation=more free market.
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12/08/2016
Businesses in America are far too regulated. A bill like this can roll back some of that overregulation.
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Argument opposed

Making the registration requirements less burdensome could lead to company’s offering stock that shouldn’t have been allowed to in the first place.

SouthernGal's Opinion
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09/03/2016
I don't see any reason to make it easier for companies to commit fraud. It seems every time regulations are eased, then we eventually have a market melt-down. Corporations & Wall St don't seem to be able to learn from their mistakes.
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Benjamin's Opinion
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09/08/2016
This will not help small businesses at all - it only applies to companies who are putting at least $75M worth of stock the market, so it's just a big favor to big business. Pass something that helps SMALL businesses.
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Jim2423's Opinion
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09/03/2016
We already have seen what happens when big business wants to make things easier. I say "NO"
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What is House Bill H.R. 2357?

This bill would require the Securities and Exchange Commission (SEC) to modify a form that is used for listing and registering common equity securities (i.e. stock) on a national securities exchange within 45 days of this legislation’s enactment.


It would let a company use
Form S-3 to register their securities if the total market value of the applicant’s stock that's not held by the company is $75 million or more, or if they have at least one class of common stock listed on a national securities exchange (like the New York Stock Exchange or the Nasdaq).

Impact

Companies registering securities (like stock); investors; and the SEC.

Cost of House Bill H.R. 2357

A CBO cost estimate is unavailable.

More Information

In-Depth: This bill was passed by the House Financial Services Committee through a 33 to 24 vote.

Form S-3 is sometimes used prior to an initial public offering (IPO), and companies that apply with it are required to have met all dividend and debt requirements for at least one year prior to applying.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user Rafael Matsungaga)

AKA

Accelerating Access to Capital Act of 2016

Official Title

To direct the Securities and Exchange Commission to revise Form S-3 so as to add listing and registration of a class of common equity securities on a national securities exchange as an additional basis for satisfying the requirements of General Instruction I.B.1. of such form and to remove such listing and registration as a requirement of General Instruction I.B.6. of such form.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
  • The house Passed September 8th, 2016
    Roll Call Vote 236 Yea / 178 Nay
      house Committees
      Committee on Financial Services
      Investor Protection, Entrepreneurship, and Capital Markets
    IntroducedMay 15th, 2015

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    This is a step towards allowing a true unregulated free market, and will help small businesses attain the capital they need to succeed.
    Like (29)
    Follow
    Share
    I don't see any reason to make it easier for companies to commit fraud. It seems every time regulations are eased, then we eventually have a market melt-down. Corporations & Wall St don't seem to be able to learn from their mistakes.
    Like (25)
    Follow
    Share
    This will not help small businesses at all - it only applies to companies who are putting at least $75M worth of stock the market, so it's just a big favor to big business. Pass something that helps SMALL businesses.
    Like (21)
    Follow
    Share
    We already have seen what happens when big business wants to make things easier. I say "NO"
    Like (14)
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    There's absolutely nothing wrong with the current process. There is no reason to make the process easier as long as the stocks are worth selling.
    Like (10)
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    Seems to me this would help smaller companies as well as larger. Less regulation=more free market.
    Like (6)
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    Anything that gets the government out of the market is a good thing.
    Like (3)
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    Businesses in America are far too regulated. A bill like this can roll back some of that overregulation.
    Like (3)
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    This just seems like a way for larger companies to get away with more than they should.
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    Since I own no company nor do I want start a company, I feel this may be a sheep in wolfs clothing. Why the sudden push for easier SEC regulations? After 8 years of liberal control of everything government, why now? And if this bill is a good idea, why was passage not unanimous? Plus, are amendments waiting to be added on? If it's a great bill, let it simmer until next year for a new Congress and POTUS.
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    While I am an advocate for simplification, something makes me suspicious of this bill. Having a comparison form or written specifics of what is going to change in the current registration, would be helpful.
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    I have been there employees are non sophisticated investors and need to being protected.
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    One thing that makes America unique is capitalism, free trade, almost no government interference in the private sector. Unfortunately we are killing those American ideals. Companies like Apple, Pfizer, and many more are moving out of the country because of government regulations. This has left with less job opportunities for people. This plan will help us get back on track to those ideas. By helping businesses and there capital.
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    Deregulation is the last thing our unstable economy needs. Do you really want another recession? The economic boom of the 1950s and 1960s is a direct result of the New Deal-era regulation of Wall Street which followed in the wake of the Great Depression. Anyone trying to deregulate is merely trading on short term gains for themselves and longterm pain and suffering for the citizenry.
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    Regulations in the way of public offerings are yet another well-intentioned but counter-productive measure by an over-involved government. I'm sure they prevent good companies from accessing capital much more often than they prevent bad companies from getting in over their heads and failing. AND WHY WOULD YOU WANT TO PREVENT A BAD COMPANY FROM FAILING?!? Let it go out of business so other entrepreneurs know that that doesn't work and to try something else! That's how progress is made!
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    Free market
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    I feel this is a small but important step towards encouraging small firm capitalism that is sorely needed
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    People talk about the free market as if companies will always act ethically when not being regulated. This is factually incorrect. Every time regulations are taken back the damage done to the economy becomes permanent
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    In the general scheme, Wall Street if anything need more regulation not less. I'd be curious what were this simplifications for doing an IPO
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    Making this simpler would undermine safeguard that keep invetors safe.
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