Summary

Requires the Comptroller General to study the costs small- and medium-sized companies face when doing an initial public offering (IPO), working with the Securities and Exchange Commission and FINRA. The study must measure direct and indirect costs, compare IPO costs to alternative financing, assess effects on capital formation and retail investor access, review pricing drivers and trends, and send findings and recommendations to Congress within 360 days of enactment.

Key Points

• Directs the Comptroller General to study IPO costs faced by small- and medium-sized companies.
• Requires coordination with the SEC and FINRA for the study.
• Study must quantify direct and indirect costs, including accountant and underwriter fees.
• Requires comparison of IPO costs to alternative financing options.
• Requires assessment of IPO costs' effects on capital formation and retail investor access.
• Calls for review of trends and factors that influence IPO pricing.
• Mandates a report to Congress with findings and recommendations within 360 days of enactment.

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