An EGC, or Emerging Growth Company, is a business that had less than $1.235 billion in total annual revenue during its most recent fiscal year and hasn’t yet sold common stock through a public registration. Once a company goes public through an IPO, it can remain an EGC for up to five years—unless it crosses certain thresholds. It will lose EGC status sooner if it earns $1.235 billion or more in revenue, issues more than $1 billion in non-convertible debt over three years, or becomes a large accelerated filer (meaning it has at least $700 million in public float). One big advantage of EGC status is the ability to use scaled-down disclosure requirements, making it easier for smaller companies to go public. If you’re looking up what is an EGC or Emerging Growth Company definition, it’s a helpful classification that supports young businesses entering the public markets.
Emerging Growth Companies, Rule 405 of the Securities Act, Press Release and Fact Sheet: Inflation-Adjustments for EGCs, Inflation Adjustments Infographic, Inflation Adjustments Video, Building Blocks: Being a Public Company, Building Blocks: Ready to Go Public, Compliance Guide: Accelerated Filer and Large Accelerated Filer Definitions
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