Relationship Between Asset Size and the Number of Shareholders for SEC (Securities and Exchange Commission) Reporting Companies

摘要

This short note demonstrated that for corporations with assets in the $0-15 million range, size of asset is not systematically related to size of shareholders in the company. Overall, most companies have relatively few shareholders, while few companies have a large number of shareholders. Based on this information and on the assumption that the benefit to investors is measured in terms of the number of additional investors protected through disclosure requirements, the report argued for a redefinition of small companies under SEC disclosure requirement.