====== Registration-Based IPO System ======
The Registration-Based [[Initial Public Offering (IPO)]] System is a regulatory framework where a company can go public as long as it provides complete, accurate, and truthful information to investors. Think of the regulator, like the U.S. [[Securities and Exchange Commission (SEC)]], not as a judge of the company's quality, but as a meticulous librarian. Their job isn't to tell you if the book (the company) is a masterpiece or a flop; their job is to ensure all the pages are there, the text is legible, and the author hasn't lied about the plot. This stands in stark contrast to the //approval-based system//, where regulators act as gatekeepers, evaluating an investment's 'merit' and deciding if a company is 'good enough' to be listed. Under the registration-based model, the power—and the responsibility—shifts from the government to the market. It’s up to investors, armed with a detailed [[prospectus]], to do their own homework and decide if an IPO is a future superstar or a shooting star destined to burn out.
===== The Core Philosophy: Disclosure, Not Approval