How long have DPOs been around?
A. Until recently, Small Businesses have been prevented from access to the strongest and most vital capital finance resource–the public financial market. Historically, initial public offerings (“IPOs”) have required extensive and complicated federal and state registration compliance. Underwriting discounts and commissions and other offering expenses, such as legal and accounting fees, printing costs, transfer agent fees, stock exchange listing fees, and blue sky expenses, for an IPO typically average between $250,000 and $500,000 for an offering of between $5 million and $20 million. Furthermore, upon completion of an IPO, the issuer would immediately become a “reporting company” subject to the periodic reporting and certain other requirements of the Securities and Exchange Commission. Compliance with these reporting requirements result in significantly increased administrative costs to the issuer. Following the passage by Congress of the Small Business Investment Incentive Act of 198
