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H.R. 3903, Encouraging Public Offerings Act of 2017 (CBO Report for Congress)

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Congress 115th
Date Requested Oct. 12, 2017
Requested By House Committee on Financial Services
Date Sent Oct. 27, 2017
Description:

Under current law, issuers of securities are generally required to register with the Securities and Exchange Commission (SEC) prior to an initial public offering (IPO) of their securities for sale. Emerging growth companies are allowed to submit draft registration statements to the SEC for confidential review before publicly filing and also can submit draft registration statements for follow-on securities offerings within one year of an IPO. SEC’s current policy guidance extends that allowance to all issuers of securities. H.R. 3903 would codify that policy guidance. Additionally, emerging growth companies are exempt from a prohibition on issuers of securities from communicating with certain potential investors about such securities without first registering them with the SEC. H.R. 3903 would expand that exemption to include all issuers of securities.

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