Public companies have long been pivotal in fostering job creation and driving innovation within the U.S. economy. By filing registration statements with the Securities and Exchange Commission (SEC) and offering securities to the general public, these companies can raise capital that is crucial for hiring new employees, investing in research and development, and expanding their operations. This capital not only facilitates the growth of individual businesses but also plays a significant role in creating well-paying jobs and maintaining competitiveness in the marketplace.
Investors also benefit from the opportunities presented by public companies. Millions of Americans invest directly or indirectly in these businesses through various savings plans, gaining the chance to invest in growth-stage companies before their share prices rise. This opportunity not only helps individuals build wealth and financial security but also stimulates further investment across the economy.
However, the current state of public markets in the U.S. is concerning. Since the late 1990s, the number of public companies has declined by approximately 50%, with initial public offerings (IPOs) at a mere fraction of their former levels from the 1980s. To reverse this trend and rejuvenate the IPO market is essential for spurring job creation and economic growth in the years to come.
Multiple factors have contributed to the decline of public companies, with the U.S. regulatory framework emerging as a significant barrier. Although Congress has begun addressing some challenges affecting the IPO landscape, there remains ample opportunity for policymakers further to stimulate economic growth through America’s public markets.
To address these issues, the U.S. Chamber of Commerce and Nasdaq have collaborated to present this report, offering vital recommendations designed to revitalize the IPO market and improve the regulatory environment for public companies. This partnership highlights the importance of maintaining robust public markets to ensure continued prosperity and growth within the U.S. economy.
