BANKING & FINANCE - July 30, 1992

SEC Will Ease Small Firm Stock Rules: The Securities and Exchange Commission voted to loosen regulations to make it easier and cheaper for small companies to raise money in the stock and bond markets. The plan would permit small businesses to use simpler forms when they register securities offerings with the SEC and when they disclose information to investors. The SEC will also ease rules so that companies no longer will have to register certain stock and bond sales. The new rules apply to companies with up to $25 million in annual revenue and $25 million in outstanding stock in public hands. The plan has been hailed by many businesses, but state regulators and others have blasted it, saying it will leave small investors more vulnerable to scams.