The real reason IPOs are flopping is the lack of startup transparency, some experts say. And they worry that a new SEC rule could make things worse
|10/15/2019||Posted by BusinessMediaguide.Com under General World News||
- While Silicon Valley VCs blame Wall Street’s dominant role in IPOs, corporate governance experts say rules that allowed startups to withhold more information was a cause of recent flops
- They cite the impact of the Jumpstart Our Business Startups Act — or the JOBS Act — which allowed startups to file for an IPO confidentially and withhold more information about their financials.
- They worry that an SEC proposal to open up private markets could make the problem with the lack of transparency worse and hurt individual investors.
- Check out Business Insider’s special series — Founder Frenemies — for more stories on Silicon read more >>>