eli5: What kind of additional regulation do companies face when they go public?

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eli5: What kind of additional regulation do companies face when they go public?

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Anonymous 0 Comments

The big one is filing quarterly and annual financial reports with the SEC. They’re very long, detailed, and generally the CEO and CFO sign them with the understanding that they’re criminally liable for errors.

Additionally, large holders and executives will need to report all of their transactions, and their transactions may be subject to further investigation for insider trading.

Also the company’s annual meeting of shareholders will be subject to additional disclosure rules.

Statements need to be filed publicly with the SEC within a fairly short period of time.

There are a number of smaller compliance requirements with the SEC, and the exchanges also have a number of regulations and rules for companies that list on their exchange with vary with the exchange the public company’s stock trades.