Washington's Proposed Rules to Protect Investors Could Widen the Wealth Gap

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'This would be a significant step backward in financial equality in capital markets,' one expert said

Spencer Platt—Getty Images—2021 Getty Imageshe Securities and Exchange Commission is pushing for significant changes in how private funded companies operate and who can invest in them, the agency said this week. The proposed changes probably won’t benefit rank and file American investors but will likely help people who are already rich get even wealthier.

The first part of the equation is improved transparency of larger private companies. That probably won’t be welcomed by the companies themselves, but investors will almost certainly receive such a change warmly because more disclosure allows Wall Street to make better informed decisions. The drop in the number of listings came mainly following the passing of the Sarbanes-Oxley Act in 2002, which introduced a slew of new, and largely onerous regulations that public companies and their leaders needed to follow. As the full burden of the rules became clearer, fewer enterprises went public. That also had the advantage of keeping private company information out of the limelight and away from newspapers, investors, and competitors.

 

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Financial equality? Like communism?

Eu disse que vocês morrerão em seus pecados se vocês não crerem que Eu Sou, de fato morrerão em seus pecados'.Eu Sou o que vive;estive morto, mas eis que estou vivo por toda a eternidade! 'Eu sou o caminho, a verdade e a vida. Ninguém vem ao Pai,a não ser por mim. EU SOU O ÚLTIMO

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