House BillHR 3395SecuritiesGovernment studies and investigations
Middle Market IPO Cost Act
INTRO MAY 14· LAST ACTION JUL 22
READING
2MIN
COSPONSORS
2
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
One chamber only
LEGISLATIVE PROGRESS
STEP 4 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Voters should care about this bill because it aims to understand a significant barrier that could be holding back economic growth and limiting investment opportunities. If the costs for small and medium-sized companies to go public are too high, it might prevent innovative businesses from accessing the money they need to expand, hire more people, and develop new products and services. This means less job creation and a less dynamic economy.
By shedding light on these costs, the study could lead to policies that make it easier and more affordable for promising businesses to raise capital. This could not only boost the economy but also give everyday Americans more chances to invest in growing companies, helping them build their own financial future. Without this study, these cost barriers might remain unaddressed, potentially stifling the growth of smaller businesses and limiting public investment options.
KEY PROVISIONS
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PROVISION 01
Requires the Comptroller General to conduct a study on the costs associated with small- and medium-sized companies undertaking Initial Public Offerings (IPOs).
This provision establishes the core objective of the bill: to thoroughly investigate the financial burdens faced by smaller companies entering public markets.
PROVISION 02
The study must consider direct and indirect costs, including fees for accountants, underwriters, and compliance with federal and state securities laws.
This ensures a comprehensive analysis of all types of expenses, both obvious and hidden, that contribute to the overall cost of an IPO.
PROVISION 03
The study will compare IPO costs with alternative financing options and analyze their impact on capital formation and the availability of public securities for retail investors.
This puts IPO costs into context, helping to understand if they deter companies from going public and how they affect ordinary investors' access to these stocks.
PROVISION 04
The Comptroller General is directed to analyze trends in IPOs over time, examining how costs have evolved and factors affecting IPO pricing practices.
Understanding historical trends is crucial for identifying long-term challenges and changes in the market dynamics of going public.
PROVISION 05
The Comptroller General must submit a report to Congress within 360 days, detailing the study's findings and offering administrative or legislative recommendations.
This provision ensures that the study's insights are formally communicated to lawmakers to inform potential policy decisions.
Voters should care about this bill because it aims to understand a significant barrier that could be holding back economic growth and limiting investment opportunities. If the costs for small and medium-sized companies to go public are too high, it might prevent innovative businesses from accessing the money they need to expand, hire more people, and develop new products and services. This means less job creation and a less dynamic economy.
By shedding light on these costs, the study could lead to policies that make it easier and more affordable for promising businesses to raise capital. This could not only boost the economy but also give everyday Americans more chances to invest in growing companies, helping them build their own financial future. Without this study, these cost barriers might remain unaddressed, potentially stifling the growth of smaller businesses and limiting public investment options.
KEY PROVISIONS
AI-extracted
high
Requires the Comptroller General to conduct a study on the costs associated with small- and medium-sized companies undertaking Initial Public Offerings (IPOs).
This provision establishes the core objective of the bill: to thoroughly investigate the financial burdens faced by smaller companies entering public markets.
high
The study must consider direct and indirect costs, including fees for accountants, underwriters, and compliance with federal and state securities laws.
This ensures a comprehensive analysis of all types of expenses, both obvious and hidden, that contribute to the overall cost of an IPO.
med
The study will compare IPO costs with alternative financing options and analyze their impact on capital formation and the availability of public securities for retail investors.
This puts IPO costs into context, helping to understand if they deter companies from going public and how they affect ordinary investors' access to these stocks.
med
The Comptroller General is directed to analyze trends in IPOs over time, examining how costs have evolved and factors affecting IPO pricing practices.
Understanding historical trends is crucial for identifying long-term challenges and changes in the market dynamics of going public.
high
The Comptroller General must submit a report to Congress within 360 days, detailing the study's findings and offering administrative or legislative recommendations.
This provision ensures that the study's insights are formally communicated to lawmakers to inform potential policy decisions.
Not later than the end of the 360-day period beginning on the date of the enactment of this Act
Comptroller General to issue a report to Congress containing all findings and recommendations from the study.
GLOSSARY
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Comptroller General
The head of the Government Accountability Office (GAO), an independent government agency that provides auditing, evaluation, and investigative services for Congress.
Initial Public Offering (IPO)
The first time a private company offers to sell its shares to the general public, allowing it to raise money from public investors.
Securities and Exchange Commission (SEC)
An independent agency of the U.S. federal government that works to protect investors, maintain fair securities markets, and facilitate capital formation.
Financial Industry Regulatory Authority (FINRA)
A private organization that acts as a self-regulator for brokerage firms and brokers in the United States, aiming to protect investors.
Capital Formation
The process by which businesses and the economy raise money to invest in their growth, often through selling stock or getting loans.
Retail Investors
Individual investors who buy and sell stocks and other financial assets for their personal accounts, typically in smaller amounts, rather than large institutions.
Underwriters
ACTION TIMELINE
13 EVENTS
JUL 22, 25
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
INTROREFERRAL
JUL 21, 25
Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
FLOOR
JUL 21, 25
Considered under suspension of the rules. (consideration: CR H3511-3513)
FLOOR
JUL 21, 25
DEBATE - The House proceeded with forty minutes of debate on H.R. 3395.
