According to the U.S. Securities & Exchange Commission (SEC), in 2018, public offerings accounted for $1.4 trillion of new capital compared to approximately $2.9 trillion that the SEC has estimated was raised through exempt offering channels. The private market consists of “accredited investors” having in excess of $1 million of assets or an annual income of more than $200,000. The availability of financing in the private market allows companies seeking that financing to avoid issuing audited financial reports to the SEC which would be required with financing from the public market.

Michael S. Pieciak, past president of the North American Securities Administrators Association (NASAA), says, “NASAA strongly supports the Private Securities Transparency and Reform Act and looks forward to working with the Subcommittee and the Congress to secure its passage.”

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