JOBS Act Will Simplify IPO Process and Private Capital Raising
By ROBERT A. CLAASSEN, JEFFREY T. HARTLIN, MICHAEL L. ZUPPONE, WILLIAM F. SCHWITTER, & CAROLINE HUNTER
On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups Act, or ‘‘JOBS Act.’’ The JOBS Act, which was passed in both the House and the Senate with bipartisan support, will simplify the initial public offering process for many companies and create new ways of raising private capital. As the JOBS Act made its way through Congress, a number of industry groups and organizations voiced both support and opposition. Both the National Venture Capital Association as well as thousands of entrepreneurs urged legislators to approve the bill, stressing the positive impact it is expected to have on the economy. Meanwhile, the North American Securities Administrators Association and other organizations expressed concerns that relaxing securities regulations could result in more securities fraud. The final version of the JOBS Act includes a number of compromises aimed at addressing the concerns while preserving the perceived benefits.
This article originally appeared in Bloomberg BNA's Securities Regulation and Law Report,
43 SRLR 823, 04/23/2012.