JOBS Act Issues: News Articles

Last updated June 2012


ForbesSEC on JOBS Act: Sorry, We're Kinda Really Busy With Other Stuff (June 29, 2012).  This article reports that the SEC will not be meeting the Congressional deadline to issue the new rules promised in the April legislation.  Specifically, the SEC has not formulated new solicitation rules called for in the bill. 


New York TimesJOBS Act Jeopardizes Safety Net for Investors (April 2, 2012).  Description: This article posits that the loosening of accounting standards for "emerging growth companies" could hurt investors in future IPOs.  The article examines the problems with the Groupon IPO and notes that investors would have had even less visibility into Groupon's weaknesses under the post-Jobs Act securities laws. 


Wall Street Journal, Small Businesses Remain Wary of IPOs (June 26, 2012).  Description: This article reports the results of survey of small business owners.  Very few small business owners are more inclinced to take their company public because of the JOBS Act.  Furthermore, many of the owners were unsure about the JOBS Act's changes to IPO rules.    


Wall Street Journal, Meet the JOBS Act's Jobs-Free Companies (June 4, 2012).   Description: This article reports that the JOBS Act is being utilized by larger companies rather than the desired entrepeneurs.  For example, large multinational corporations have created "blank check" companies (shell companies with almost no employees that are used in mergers or as a backdoor route to U.S. stock listings) in order to qualify as "emerging growth companies" for their securities filings.  


Washington Post, JOBS Act could encourage premature IPOs (July 12, 2012).  Description: This article argues that there is a danger that the JOBS Act will encourage young companies attempt to launch initial public offerings before they are truly ready.