SEC. 7. OTHER MATTERS. 
(a) DRAFT REGISTRATION STATEMENTS.—Section 6 of 
the Securities Act of 1933 (15 U.S.C. 77f) is amended by 
adding at the end the following: 
‘‘(e) EMERGING GROWTH COMPANIES.— 
‘‘(1) IN GENERAL.—Any emerging growth com-
pany, prior to its initial public offering date, may 
confidentially submit to the Commission a draft reg-
istration statement, for confidential nonpublic review 
by the staff of the Commission prior to public filing, 
provided that the initial confidential submission and 
all amendments thereto shall be publicly filed with the 
Commission not later than 21 days before the date on 
which the issuer conducts a road show, as such term 
is defined in section 230.433(h)(4) of title 17, Code of 
Federal Regulations, or any successor thereto. 
‘‘(2) CONFIDENTIALITY.—Notwithstanding any 
other provision of this title, the Commission shall not 
be compelled to disclose any information provided to 
or obtained by the Commission pursuant to this sub-
section. For purposes of section 552 of title 5, United 
States Code, this subsection shall be considered a stat-
ute described in subsection (b)(3)(B) of such section 
552. Information described in or obtained pursuant to 
this subsection shall be deemed to constitute confiden-
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tial information for purposes of section 24(b)(2) of the 
Securities Exchange Act of 1934.’’. 
(b) TICK SIZE.—Section 11A(c) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78k-1(c)) is amended by add-
ing at the end the following new paragraph: 
‘‘(6) TICK SIZE.— 
‘‘(A) STUDY AND REPORT.—The Commis-
sion shall conduct a study examining the transi-
tion to trading and quoting securities in one 
penny increments, also known as decimalization. 
The study shall examine the impact that 
decimalization has had on the number of initial 
public offerings since its implementation relative 
to the period before its implementation. The 
study shall also examine the impact that this 
change has had on liquidity for small and mid-
dle capitalization company securities and wheth-
er there is sufficient economic incentive to sup-
port trading operations in these securities in 
penny increments. Not later than 90 days after 
the date of enactment of this paragraph, the 
Commission shall submit to Congress a report on 
the findings of the study. 
‘‘(B) DESIGNATION.—If the Commission de-
termines that the securities of emerging growth 
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companies should be quoted and traded using a 
minimum increment of greater than $0.01, the 
Commission may, by rule not later than 180 
days after the date of enactment of this para-
graph, designate a minimum increment for the 
securities of emerging growth companies that is 
greater than $0.01 but less than $0.10 for use in 
all quoting and trading of securities in any ex-
change or other execution venue.’’. 
SEC. 8. OPT-IN RIGHT FOR EMERGING GROWTH COMPA-
NIES. 
(a) IN GENERAL.—With respect to an exemption pro-
vided to emerging growth companies under this Act, or an 
amendment made by this Act, an emerging growth company 
may choose to forgo such exemption and instead comply 
with the requirements that apply to an issuer that is not 
an emerging growth company. 
(b) SPECIAL RULE.—Notwithstanding subsection (a), 
with respect to the extension of time to comply with new 
or revised financial accounting standards provided under 
section 7(a)(2)(B) of the Securities Act of 1933 and section 
13(a) of the Securities Exchange Act of 1934, as added by 
section 3(b), if an emerging growth company chooses to 
comply with such standards to the same extent that a non- 
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