Litigation / regulation could be decreasing the amount of IPOs / public wealth
By Hicbd
Fri Sep 16 2022 11:37 am
"But litigation and regulation are the real pathologies driving IPOs to the brink of extinction. Public companies invite lawsuits because opportunistic plaintiffs’ lawyers can round up a couple of investors as clients and bring lucrative class action suits against companies, boards and top managers ostensibly on behalf of all investors...Regulation is another big problem for public companies. The Securities Act of 1933 prohibits not only actual sales of securities but even the offering of securities to investors until the SEC’s Division of Corporation Finance signs off on hundreds of pages of disclosures and accounting information...The Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010 both greatly increased the risks of being an officer of a public company."
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