The U.S. stock market has seen 315 initial public offerings (IPOs) this year, more than the 225 in 2024 and 154 in 2023. However, Securities and Exchange Commission (SEC) Chair Paul Atkins believes that easing stringent disclosure requirements could bring even more companies to the market, pointing out that the number of public companies has fallen by about 40% since the 1990s.
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“If we want the next generation of innovators to choose our public markets, we need disclosure that is calibrated for a company’s size and maturity,” said Atkins in a speech at the New York Stock Exchange (NYSE).
Smaller Companies Burdened by Excessive Disclosures, Says Atkins
Atkins stressed his goal to “make IPOs great again,” and added that excessive disclosures burden smaller companies relative to larger firms because of their more limited resources and compliance capacity.
Furthermore, Atkins believes public companies are required to publish too many SEC filings that may not benefit shareholders. “Our capital markets thrive not through the volume of disclosures, but the clarity and importance of them to investors,” said Atkins.
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