The SEC has proposed to amend the definition of a “smaller reporting company” to expand the number of companies that qualify for this classification and are therefore able to take advantage of the scaled disclosures in Regulation S-X and Regulation S-K that apply to such companies. As noted by SEC Chair Mary Jo White in the SEC’s press release on the proposal, the amendments are intended to “promote capital formation and reduce compliance costs for smaller companies while maintaining important investor protections.”
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