Why You Might Soon Have More (But Riskier) Ways to Grow Your Savings
You might soon notice a surge of new names appearing on your favorite trading apps and in your retirement fund options. The government is planning to lower the hurdles for private companies to join the stock market, which could change how you choose where to put your hard-earned money. While more choices can be a benefit, these changes mean you will have to be much more careful about doing your own homework before buying in. What's Going On The Securities and Exchange Commission (SEC) is the government agency that acts as the referee for the stock market. Their primary job is to ensure that when a company asks you for money by selling shares, they aren't lying about their profits or hiding massive debts. Currently, the process for a company to go public—known as an Initial Public Offering or IPO—is incredibly rigorous, requiring mountains of paperwork called "registration" and constant, detailed financial updates called "reporting." These rules are designed ...