This term identifies a specific category of issuers under the Securities Exchange Act of 1934. These entities are subject to stricter reporting requirements with the Securities and Exchange Commission (SEC). Qualification hinges primarily on the issuer’s public float, which must exceed \$700 million, and their having been subject to SEC reporting requirements for at least twelve calendar months. For instance, a company with a substantial market capitalization and a history of SEC filings would likely fall under this classification.
The classification system serves to ensure greater transparency from larger, more influential market participants. Expedited filing deadlines and mandatory auditor attestation of internal control over financial reporting are intended to provide investors with more timely and reliable information. Historically, the SEC implemented these rules to enhance investor protection and maintain market integrity, recognizing the significant impact these larger filers have on the overall market.
