Research On The United States Securities And Exchange Commission’s Regulatory System Of IPO

IPO(Initial Public Offering), the first sale of stock by a company to the public, which is an important mean of corporate financing. In order to conduct the research on the IPO regulation from American Securities and Exchange Commission(SEC), this paper aims to investigate the government regulatory agencies’ nature of power, pattern arrangement, the systems itself, method, rule tools, etc. Through the analysis of these contents, I am trying to figure out the basic connotation of the regulation model, how the system is developing into it is today and whether it works moderately. Then analysis and evaluation are given. First of all, the paper analyze the theoretical basis of IPO regulation, including the meaning and function of government regulation, the particularity of securities market compared with the general market, the pricing mechanism of IPO in united states and anomalies associated with IPO market. Then, this paper studied partial systematic arrangements of SEC’s IPO regulation, including what principles are the regulators based on, what the attribute of right is, the organization mode for IPO regulation, that is, the regulators adopt what kind of management mode. These arrangements related to whether and how regulators can handle their job. This paper then studied the means that SEC uses for IPO regulation, which includes specific IPO regulatory system and tools. Finally, the paper has carried on the appraisal to SEC’s IPO regulation model. The appraisal is carried on in three parts, the nature of SEC’s IPO regulatory rights and regulatory arrangements mode, specific rules and regulatory measures. It also uses the Facebook Company listed case to point out deficiencies of SEC’s specific IPO regulatory system and measures.