Capitol Report: Republicans say retail investors are missing out on the ‘lottery tickets’ of private firms going public

Congressional Republicans believe the cost of going public, and being a public company, is too darn high. That means retail investors are missing out on huge gains, since private company “unicorns” are avoiding public markets and the “unnecessary regulatory burdens” imposed by the 2002 Sarbanes-Oxley Act.

In a hearing on Tuesday of the House Financial Services subcommittee on capital markets, Rep. Warren Davidson, a Republican from Ohio, compared the stock market to buying a ticket to the lottery. “We don’t stop people from spending money on lottery tickets and clearly the risk of losing your capital in the lottery is much greater.

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