sociation and the emerging growth company or its 
shareholders that restricts or prohibits the sale of 
securities held by the emerging growth company or 
its shareholders after the initial public offering date. 
SEC. 106. 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 pro-
vided to or obtained by the Commission pursuant to
this subsection. For purposes of section 552 of title 
5, United States Code, this subsection shall be con-
sidered a statute described in subsection (b)(3)(B) 
of such section 552. Information described in or ob-
tained pursuant to this subsection shall be deemed 
to constitute confidential 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 
adding 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 im-
pact that decimalization has had on the number 
of initial public offerings since its implementa-
tion relative to the period before its implemen-
tation. The study shall also examine the impact 
that this change has had on liquidity for small 
and middle capitalization company securities 
and whether there is sufficient economic incen-
tive to support trading operations in these secu-
rities in penny increments. Not later than 90 
days after the date of enactment of this para-
graph, the Commission shall submit to Con-
gress a report on the findings of the study. 
‘‘(B) DESIGNATION.—If the Commission 
determines that the securities of emerging 
growth 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 paragraph, 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 exchange or other execution venue.’’. 
SEC. 107. OPT-IN RIGHT FOR EMERGING GROWTH COMPA-
NIES. 
(a) IN GENERAL.—With respect to an exemption pro-
vided to emerging growth companies under this title, or 
an amendment made by this title, 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 sec-
tion 13(a) of the Securities Exchange Act of 1934, as 
added by section 102(b), if an emerging growth company 
chooses to comply with such standards to the same extent 
that a non-emerging growth company is required to com-
ply with such standards, the emerging growth company— 
(1) must make such choice at the time the com-
pany is first required to file a registration state-
ment, periodic report, or other report with the Com-
mission under section 13 of the Securities Exchange 
Act of 1934 and notify the Securities and Exchange 
Commission of such choice; 
(2) may not select some standards to comply 
with in such manner and not others, but must com-
ply with all such standards to the same extent that 
a non-emerging growth company is required to com-
ply with such standards; and 
(3) must continue to comply with such stand-
ards to the same extent that a non-emerging growth 
company is required to comply with such standards 
for as long as the company remains an emerging 
growth company.