Foreign companies might lose their special treatment in US markets

The US Securities and Exchange Commission is asking for public comments on how it defines a "foreign private issuer." This definition determines which foreign companies get special, easier rules when listing on US stock exchanges.

For decades, foreign companies could raise money in the US without meeting the same strict reporting and governance rules as American companies. This made it easier for them to access US capital. If the definition changes, some foreign companies will have to follow the same rules as US companies, which means more transparency for investors but also more cost and complexity for the companies.