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Macmillan Gap


The report of the Committee on Finance and Industry in 1931 (Macmillian committee) highlighted the difficulties which small- and medium-sized firms experienced in raising long-term capital. The report made proposals for dealing with this 'gap' arising from the Jack of facilities for public issues in small amounts. Facilities for coping with small issues were later developed, especially through Issuing Houses and placing small amounts privately with institutional investors such as insurance companies. In addition, new institutions have been set up, such as the Industrial and Commercial Finance Corporations.

Reference: The Penguin Dictionary of Economics, 3rd edt.