The Securities and Exchange Commission (SEC) is reviewing U.S. stock-offering rules, The Wall Street Journal reports. The agency is reviewing a rule that requires firms with over 499 shareholders to disclose financial information, as well as other restrictions on how nonpublic firms can solicit investors.
The Republicans want the SEC to raise the 500-shareholder threshold or else change the rule so that more sophisticated investors who understand the markets will not count toward the total, adds Reuters. The SEC also will analyze the constitutional issues raised by the general-solicitation ban.
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