A recent article, "The Credibility-Destroying Earnings Q&A Reply" by The Small Cap Institute casts a spotlight on a critical issue: trust. Small-cap firms face distinct challenges, particularly in managing their balance sheets. Too often, management teams find themselves at a crossroads, facing financial hurdles that demand strategic solutions only to deny culpability when grilled by an investor.

The recent amendments made this week by the SEC to Sections 13(d) and 13(g) of the Securities Exchange Act of 1934 will usher in a new era of transparency, with profound implications for both public companies and investors. It’s an important step forward in modernizing the capital markets where some 68 million American households and vast numbers of non-US investors decide to place their money and one, that is long overdue.