# Plain Language Summary: Main Street Growth Act

This bill creates a new type of stock exchange called a "venture exchange" designed to make it easier for early-stage and small companies to raise money by selling stock to the public. Right now, companies that want to go public and have their stock traded must meet strict requirements set by the Securities and Exchange Commission (SEC). This bill creates a lighter-touch alternative specifically for smaller, younger companies that don't yet meet those traditional standards.

A venture exchange would be a marketplace where shares of early-stage companies and small businesses can be bought and sold, similar to how stocks trade on the New York Stock Exchange or NASDAQ. To qualify for trading on a venture exchange, a company generally needs to be either a startup that hasn't gone public yet, or a small public company with limited trading activity. The bill allows existing major stock exchanges to create a venture exchange as a separate section of their business, or allows new venture exchanges to be created from scratch. Companies trading on venture exchanges can use simpler disclosure rules—similar to what small companies already use for other types of public offerings—rather than the full reporting requirements of traditional stock exchanges.

The bill includes several protections for investors. Venture securities can only trade on venture exchanges, not on regular stock exchanges, which keeps them separate from mainstream markets. The SEC must create rules ensuring that people buying and selling these stocks understand the unique risks involved. The SEC also has the authority to limit trading of these securities if needed to protect investors. Additionally, the bill gives the SEC flexibility to adjust the rules as the venture exchange market develops, and suggests the SEC might create a specialized office to oversee these new exchanges.

Overall, this bill aims to help small companies and startups access public capital markets with less regulatory burden, while maintaining baseline investor protections through SEC oversight and disclosure requirements.

Main Street Growth Act

Emmer, Tom

Main Street Growth Act This bill allows for the registration of national venture securities exchanges for the purpose of trading the securities of certain small companies, such as startups and emerging growth companies. Individuals and existing national securities exchanges may apply to the Securities and Exchange Commission for approval to register such an exchange, or to register a listing tier within an existing exchange. The bill sets forth requirements for these venture exchanges, including required disclosures, trading limits, and trading privileges.