Insider Share Sales
The bill requires the SEC to study the effectiveness of rules that allow corporate executives to set up plans to sell a predetermined number of shares at a predetermined time. While such plans are meant to help executives avoid being accused of insider trading, Waters is concerned they might be being abused.
Easing IPOs
One measure would expand rules that allow companies to submit their plans for an initial public offering to the SEC confidentially, so they can get feedback from the regulator on any issues early on. The bill would also allow more companies to gauge investor interest before going public, a practice known as testing the waters.
This article was provided by Bloomberg News.