Bill would let all companies get analyst research during stock offerings

What does this do?

This bill would broaden a securities law exception that currently allows banks and brokerages to publish research reports on emerging growth companies' common stock during public offerings. It would extend this exception to cover any company and any type of security, including bonds and preferred stock, not just common stock.

Who does it affect?

Investment banks, brokerage firms, and financial analysts who write research reports would be affected, along with companies of all sizes planning public securities offerings and investors who read analyst research.

Why does it matter?

Broader publication of research during offerings could give investors more information, but may also raise concerns about analysts producing favorable research to help firms sell securities they are underwriting. The bill does not alter other securities disclosure rules.

Where does it stand?