Unlocking America’s Capital Markets: Driving Economic Growth and Innovation

Since the inception of public companies, they have played a crucial role in driving job creation and innovation in the American economy. By submitting registration statements to the Securities and Exchange Commission (SEC) and offering securities to the public, these companies secure essential capital for hiring new workers, investing in research and development, and expanding their business operations. This funding not only supports the growth of individual enterprises but also contributes to the creation of well-paying jobs and sustains competitiveness within the marketplace.

Investors also reap the benefits of public companies by gaining access to opportunities to invest in these businesses. Through various savings plans, millions of Americans can directly or indirectly participate in the growth of these companies, potentially capitalizing on the rising share prices of these growth-stage enterprises. This investment avenue not only aids individuals in building wealth and financial security but also fosters additional investments across the entire economy.

Nevertheless, the current state of the public markets in the United States presents cause for concern. Since the late 1990s, there has been a significant decrease in the number of public companies, with initial public offerings (IPOs) dwindling to a fraction of what they were in the 1980s. Reversing this downward trend and revitalizing the IPO market are essential aspects of promoting job creation and economic growth in the foreseeable future.

Numerous factors have contributed to the decline of public companies, with the regulatory framework in the U.S. emerging as a substantial impediment. While Congress has embarked on addressing some of the challenges affecting the IPO landscape, there are ample opportunities for policymakers to further catalyze economic growth through the country’s public markets.

Recognizing the pressing need to tackle these issues, the U.S. Chamber of Commerce and Nasdaq have joined forces to present this report. The recommendations put forth in this collaborative effort aim to breathe new life into the IPO market and enhance the regulatory environment for public companies. This partnership underscores the significance of maintaining robust public markets to sustain continued prosperity and growth within the U.S. economy.