This Day On The Street
Continue to site
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

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

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, 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:

>To submit a news tip, email:


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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
INTU $91.79 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs