Los Angeles, CA (PRWEB) June 29, 2012
The IPO market may be negatively affected by the Supreme Court decision on Obamacare. This is according to the website IPO Initial Public Offerings which provides information on IPO's (initial public offerings) and how small businesses can go public. The Dow Jones Industrial Average went down on the day the decision was announced. Many businesses are afraid to expand because they don't know the impact on costs that Obamacare will really have. The IPO process takes a great deal of time and once that is coupled with the uncertainty businesses are facing there is a recipe for disaster in the IPO market according to the IPO website.
According to IPO Initial Public Offerings website spokesperson, "Many US businesses feel that over regulation is curtailing growth. In fact, many investment bankers feel the US markets do not hold the luster they once did. Many companies are going public on foreign exchanges like the London Stock Exchange and the Frankfurt stock exchange". According to IPO Initial Public Offerings website, the costs of the Sarbanes Oxley law and the Dodd Frank Act only exacerbate the economic situation. This only leads to muddling the market for new IPO's. These laws are huge, containing hundreds and sometimes thousands of pages. This creates great uncertainty in capital markets. When the capital markets are uncertain companies and their management are less willing to begin the initial public offering process.
The major markets went down on Thursday due in part to the US Supreme Court decision regarding Obamacare. The Supreme Court decision retains most of the law that expands health care insurance to many of the previously uninsured. It was a very close 5-4 decision. One of the items it covers is the penalty an individual would pay if they don't have health insurance. Obama care also forces insurance companies to cover those that may have pre existing health problems. However, the Supreme Court did limit the expansion of Medicaid.
There were just over 300 worldwide IPO's in 2011. Most of the companies that did an IPO in the US were internet based companies. The Greek financial crisis had a lot to do with the low number of initial public offerings worldwide. We will have to wait and see how the Supreme Courts decision affects the US IPO market. IPO initial public offerings helps companies go public including small businesses.
Contact Person: Bill Truman
IPO Initial Public Offerings
We Take Companies Public Including Start Up Companies
Email: information (at) IPOinitialpublicofferings (dot) com
Website: www (dot) ipoinitialpublicofferings (dot) com
Tele: 310 888 1195