Shutdown Silver Lining For IPOs

Shutdown Silver Lining For IPOs

Shutdown Silver Lining? Your IPO Review Comes After Investors Buy In In a twist few saw coming, shutdown silver lining? Your IPO review comes after investors buy in — thanks to a new SEC workaround that’s reshaping how startups go public during the government shutdown. Image Credits:Viaframe With nearly 90% of SEC staff furloughed , companies can now file their IPO paperwork and see it automatically approved after 20 days . This little-known rule isn’t new, but it’s suddenly front and center as the SEC temporarily allows listings without pricing information . The Shutdown Shortcut: IPOs Without Traditional Oversight Normally, IPOs go through detailed SEC scrutiny before any public listing. But with the agency operating on minimal staff, startups are using the automatic effectiveness rule , which skips manual review. The SEC’s latest clarification makes this more appealing — companies can omit “price-dependent information” without penalties. In plain terms, firms can go public without revealing …