Trump vows to make IPOs great again
Source: economist.com
- Donald Trump plans to overhaul US IPO rules to revive stock listings on Wall Street.
- The proposal includes easing accounting standards and allowing more flexible disclosures to cut costs and speed up deals.
- Success could boost listings and investor access but risks weaker investor protections.
Donald Trump's administration is pushing reforms to make initial public offerings (IPOs) cheaper and faster, aiming to reverse the decline in US stock listings. Wall Street bankers and companies back the plan, which targets burdensome regulations from the Sarbanes-Oxley Act and beyond. It matters because fewer IPOs have starved public markets of new stocks, pushing firms to stay private longer and limiting investor opportunities.