An advisory committee to the Securities and Exchange Commission recommended the creation of a separate U.S. equity market devoted to the trading of small companies.
The Advisory Committee on Small and Emerging Companies, which was formed in September of 2011, released its report last week calling for the new small-company exchange. The companies, defined by those with a market capitalization of less than $250 million, would also be subject to a separate set of potentially less onerous regulations. “These companies would be subject to a regulatory regime strict enough to protect investors but flexible enough to accommodate innovation and growth, offers promise of providing a satisfactory trading venue for small and emerging companies, which may encourage initial public offerings of their securities,” the committee wrote in the report.
