This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

3 Things You Should Know About Small Business: September 5

2. How to bring back small-cap IPOs. While the JOBS Act provided some relief for small companies seeking to go public, Alan Patricof, a venture capitalist focusing on startups, shares his solutions to the remaining "structural" impediments in the public markets for small firms in a Fortune article.

The first issue is that there has been a decline in underwriters that specialize in what would now be described as "small underwritings," a direct result of SEC rulings that took out much of the incentive for traders and market makers on small deals, Patricof says.

The high costs and burdens of being a small public company trying to comply with Sarbanes Oxley present another problem, Patricof says, even with minimal relief from the JOBS Act.

"While many of these rulings were intended to protect investors and reduce costs, they had the opposite effect, in many instances raising the cost of capital for most small companies in their growth phase," and ensuring that small companies would list in markets outside the U.S. where regulatory burdens weren't so high, he writes.

Patricof's solutions include increasing the number of underwriters focused on underwriting deals of less than $50 million and increasing the "aftermarket support" for these companies, which will only be done by "increasing incentives which translates into restoring tick sizes and commission rates so that traders and salesmen can be attracted to focusing their attention on small companies."

3. U.S. Open's self-contained event a bust for local Queens businesses. While thousands of tennis fans flock to Arthur Ashe Stadium in Queens, N.Y. every year to watch two weeks-worth of the world's best tennis, local businesses say the additional U.S. Open foot traffic isn't making its way into their establishments, according to DNAinfo.com.

Down the street, business at the Roosevelt Sports Bar was slow, for instance. Manager Michael Fann says that business hasn't increased very much, despite being just a few blocks from the stadium and despite the U.S. Tennis Association claiming that the event generates more than $750 million in annual revenue for the New York City region.

Some business owners complain that the event is too "self-contained," meaning that patrons can exit the nearest subway station and walk into the event center without setting foot on a Queens street. Once inside fans have access to food, drinks, retail stores and ATM machines.

The Queens Economic Development Council is working to improve local area spending. The council has a tourism booth at the U.S. Open with the goal of pointing fans to area restaurants and businesses in the borough, DNAinfo.com says.

One industry that is benefiting from the event is area hotels.

-- Written by Laurie Kulikowski in New York.

To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com.

>To submit a news tip, email: tips@thestreet.com.

RELATED STORIES:







Follow TheStreet on Twitter and become a fan on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs