It’s human nature to assume that bigger is better, but that isn’t necessarily the case when venture capital-backed companies choose lead underwriters for their initial public offerings.
The Tick Size Bill would allow small-cap issuers to opt in to trading increments of either a nickel or dime, and provide the necessary incentive for Wall Street to once again support these stocks, says Timothy Keating.
Pity the research analyst. In the 79 years since the 1934 publication of Benjamin Graham and David Dodd’s Security Analysis, no other job on Wall Street has been characterized by more reputational and financial volatility.
In their latest report on the long-term ills affecting the IPO markets, David Weild and his co-authors laser lock on market structure and persuasively argue in a series of Grant Thornton white papers that increasing “tick” sizes will restore capital formation, jobs and investor confidence. Tick sizes? Yes, they’re talking about tick sizes (i.e., the minimum increment in which a stock can trade) and they’re right.