Resumen de Is effective junior equity market regulation possible?

J. Ari Pandes, Michael J. Robinson

• The authors examined Canada�s Capital Pool Company (CPC) program, a regulated blind pool program, since its inception in 1986. They found that the CPC regulations increased the quality of both the junior equity companies going public and the underwriters taking those companies public and significantly reduced the incidence of fraud in that market. Overall, the authors found that effective regulation can help create a viable junior equity market that facilitates the development of smaller companies.