How the Push for More IPOs Unleashed a Surge of Scams

In recent years, the United States has seen a surge in initial public offerings, driven in part by regulatory changes designed to make it easier for “emerging growth companies” (EGCs) to go public. These companies, often startups or fast-growing firms, are allowed to take advantage of streamlined reporting requirements, reduced disclosure obligations, and other incentives intended to encourage innovation and access to capital. While the intent behind these rules was to support young businesses in raising funds efficiently, they have also created opportunities for unscrupulous operators to exploit the system, leaving investors exposed to fraud and inflated valuations.

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