in5points
BusinessBloomberg

IPOs of Tiny Foreign Firms Nearly Vanish in US After Pump-and-Dump Crackdown

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  1. US crackdown on pump-and-dump schemes has led to a sharp decline in IPOs of tiny foreign firms.

  2. Increased scrutiny on foreign microcaps has dampened the number of public debuts from such companies.

  3. The crackdown targets fraudulent practices that inflate stock prices of small foreign companies before insiders sell shares.