Who Can't Raise Capital?: The Scylla and Charybdis of Capital Formation

16 Pages Posted: 30 May 2014

See all articles by James D. Cox

James D. Cox

Duke University School of Law

Date Written: May 28, 2014

Abstract

There has long been complaints that the heavy regulatory hand of Blue Sky Law administrators prevents capital formation by small issuers. Using data recently collected by the SEC, the article reasons that the problems capital starved small issuers encounter is not the state regulator. The problems are elsewhere. The paper explores whether intermediation may ultimately enable more startups to raise needed funds. For this to occur, however, the paper explores the formidable obstacles the broker must overcome in meeting demanding suitability requirements.

Suggested Citation

Cox, James D., Who Can't Raise Capital?: The Scylla and Charybdis of Capital Formation (May 28, 2014). Economic Research Initiatives at Duke (ERID) Working Paper. Available at SSRN: https://ssrn.com/abstract=2442919 or http://dx.doi.org/10.2139/ssrn.2442919

James D. Cox (Contact Author)

Duke University School of Law ( email )

210 Science Drive
Box 90362
Durham, NC 27708
United States
919-613-7056 (Phone)
919-613-7231 (Fax)

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