Initial Public Offerings: Status, Flaws And Dysfunctions
- Topics:
- IPO
- Source:
- Industry Canada
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Overview: This paper highlights a number of major problems in the operation of the primary issues market. In the authors view, the main one is the low survival rate of small businesses involved in initial public offerings. The policy of stimulating small firms' stock exchange listings should be re-evaluated. The emphasis should be on mechanisms that would allow IPOs (Initial Public Offerings) to be deferred until businesses have had a reasonable chance to ensure they can survive. Stress should be placed on developing a supply of capital prior to the issue. The arguments in favour of lightening the regulatory burden for small issues should be reviewed in the light of these findings as well.
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Format: PDF | Size: 432KB | Date: Apr 2003 | Pages: 65



