When most of us think about the Securities and Exchange Commission (SEC), we think about a government agency designed to ensure public companies provide investors with accurate information, that employees who have access to “inside information” don’t trade on it, and that investment professionals don’t exploit, misinform or defraud the average investor on Main Street, USA. We certainly don’t think of the SEC as a means for broadly regulating private companies trying to raise capital, especially during a down economy many think is heading into recession.
President Ronald Reagan famously answered his rhetorical question of what are the nine most terrifying words in the English language as: “I’m from the government, and I’m here to help.” While we can take that notion with a grain of salt, the truth of the matter is that the SEC is one of the most powerful government agencies you may know the least about, and under current leadership, it is seeking a dramatic increase in its oversight, regulatory demands, and enforcement among all American companies, including, more and more, privately held ones.
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