Bill Overview
Title: To lower the aggregate market value of voting and non-voting common equity necessary for an issuer to qualify as a well-known seasoned issuer.
Description: This bill reduces the required aggregate market value of voting and non-voting common equity shares for an issuer of securities to qualify as a well-known seasoned issuer. A well-known seasoned issuer is allowed to make expedited public offerings of securities through automatic shelf registrations.
Sponsors: Rep. Steil, Bryan [R-WI-1]
Target Audience
Population: People involved with U.S. public companies and their capital market activities
Estimated Size: 15000000
- The bill impacts companies issuing securities by lowering the threshold to qualify as well-known seasoned issuers.
- Well-known seasoned issuers benefit from simplified regulatory procedures, which can lower costs and expedite market operations.
- Investors in these companies may be affected due to potentially more frequent and spontaneous public offerings which could affect stock price and market dynamics.
- The changes could encourage smaller companies to enter the market or offer more securities, impacting their employees and stakeholders.
- Financial markets may see increased activity in security issuance, impacting market analysts and brokers.
Reasoning
- The policy primarily impacts employees, investors, and other stakeholders of medium-sized and smaller public companies which are poised to benefit from easier access to market resources.
- Well-known seasoned issuer status simplifies capital raising efforts through less burdensome regulatory requirements, which could lead to increased job stability and growth in these companies, affecting wellbeing.
- Investors and analysts may need to navigate a more dynamic market landscape, potentially altering their financial strategies.
- The $1,000,000 initial budget could limit extensive direct outreach or education efforts aimed at explaining these changes to the public, thereby influencing initial perceptions and responses.
- Long-term effects can include increased competition among companies for market attention, potentially altering business strategies, growth trajectories, and employment portfolios.
Simulated Interviews
Financial Analyst (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- The policy might make my job a bit more challenging due to increased volatility.
- My clients could have more opportunities but also more risks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Tech Company Executive (San Francisco, CA)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- If our company can raise capital quickly, we can expand faster and compete better.
- I am excited about the flexibility this could offer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Small-cap Investor (Austin, TX)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 10/20
Statement of Opinion:
- There might be more IPOs to consider, but also more risk from under-the-radar companies.
- I worry some small companies might not survive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Corporate Lawyer (Chicago, IL)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 12/20
Statement of Opinion:
- This could lead to an increase in business as more companies seek legal advice for new filings.
- Excited about potential growth but mindful of market integrity issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Software Engineer (Los Angeles, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I hope this means my company will have better financial stability and growth.
- Increased ability to raise funds could mean more hires and projects.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Investment Banker (Boston, MA)
Age: 41 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 6.0 years
Commonness: 10/20
Statement of Opinion:
- More firms could mean more business but also more pressure.
- I need to stay updated on this policy to assist clients effectively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired Engineer (Detroit, MI)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- Changes in company valuations are hard to keep up with on my own.
- I rely on stable investments, so I worry about increased volatility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Startup Founder (Seattle, WA)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Easier access to public markets could mean faster growth and more funding possibilities for us.
- It definitely changes the landscape for fundraising.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Stock Market Educator (Miami, FL)
Age: 48 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I need to incorporate these changes into my workshops to help novice investors understand their implications.
- This policy can create both opportunities and pitfalls for new investors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Small Business Owner (Philadelphia, PA)
Age: 61 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 17/20
Statement of Opinion:
- I'm keen to see if this policy means easier access for my business to scale.
- Watching how peers leverage opportunities will guide my approach too.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $1000000 (Low: $500000, High: $1500000)
Year 2: $1000000 (Low: $500000, High: $1500000)
Year 3: $1000000 (Low: $500000, High: $1500000)
Year 5: $1000000 (Low: $500000, High: $1500000)
Year 10: $1000000 (Low: $500000, High: $1500000)
Year 100: $1000000 (Low: $500000, High: $1500000)
Key Considerations
- The primary impact of the policy will be on the regulatory environment affecting financial markets, with broader economic implications through increased capital market activities.
- Monitoring the financial resilience and compliance of newly eligible well-known seasoned issuers will be crucial to prevent systemic risks.
- Policy changes will likely enhance competitive market dynamics, benefiting smaller firms in particular.