It's true, but it's not just the SEC that creates this dynamic, it's selection bias. Companies that can take smart money would rather take smart money than mom-

It's true, but it's not just the SEC that creates this dynamic, it's selection bias. Companies that can take smart money would rather take smart money than mom-and-pop money, and so mom-and-pop investors wouldn't have access to the good opportunities even if the SEC weren't standing in the way.