SEC Plans to Boost Small-Business Capital Formation
| May 8, 2008 |  View for printing |
The commission wants to widen access to capital for exchange-listed companies.
The Securities and Exchange Commission will consider a proposal its staff says would boost access to capital for small companies that are either developing or struggling.
The rule amendment would give more small, financially troubled businesses a better chance at getting investment dollars. As it is, some of them have been deprived of financing from a group of companies that have investment restrictions under SEC rules.
The new rule would change the definition of so-called "eligible portfolio companies," smaller business that until now have included private and public companies not listed on a national exchange. The amendment would bring some exchange-listed companies into the fold, which could affect up to 1,500 businesses, based on 2006 SEC data. The number of qualifying companies could increase by 11 percent to 16 percent, depending on the details of the SEC proposal.
Sarah Johnson CFO.com | US
Full Story: http://www.cfo.com/article.cfm/11334 ... ayinfinance
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