Political Quotes

“Mr. Speaker, this bill requires the SEC to study the costs encountered by small- and medium-sized companies when undertaking the initial public offering of their securities to the public, otherwise known as IPO, as well as certain other offerings that are exempt from SEC registration. When going public, companies tend to hire underwriters, like investment banks, and other professionals, like attorneys and accountants, to help prepare the IPO. Underwriters serving as intermediaries between companies and prospective investors typically receive a set percentage of the IPO price as compensation for their work. Large companies have in recent years been able to negotiate lower percentages for this process, which reduces their overall fee. At the same time, smaller companies have continued to pay the same historic percentage for this service. Simply put, this bill sheds light on how much small- and medium-sized companies are paying for their underwriting fees, which will allow these companies to negotiate lower prices. Mr. Speaker, I urge all of my colleagues to support my friend from Connecticut (Mr. Himes) commonsense measure.”