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The SEC’s lobster trap

Mike O'Sullivan has an interesting post at Corp Law Blog on Rule 12h-3 and 12g5-1. The proposed changes he discusses would make it more difficult for corporations to extricate themselves from the SEC's periodic disclosure requirements, thereby perhaps also discouraging marginal firms from going public in the first place. If the securities laws are like a lobster trap, as some argue, these changes would further strengthen the analogy.