This legislation directs the Securities and Exchange Commission (SEC) to undertake a comprehensive review and update of its definition of the term "small entity" as it applies to securities laws and the Regulatory Flexibility Act. The Commission is required to conduct a study within one year of enactment, and again every five years thereafter, to assess how its current definition aligns with the intent of the Regulatory Flexibility Act, the growth of financial markets, and how to ensure a meaningful number of entities are covered. Following each study, the SEC must submit a detailed report to Congress outlining its findings and providing specific recommendations for amending the definition to expand its coverage. Concurrently with or after these studies, the SEC is mandated to revise its rules, subject to public notice and comment, based on the study's results. Furthermore, after the initial rule revisions and every five years thereafter, the Commission must adjust any dollar figures within the small entity definition to account for inflation, using the Consumer Price Index.