Yesterday, Congress passed the Jumpstart Our Business Startups Act (the “JOBS Act”). President Obama is expected to sign the JOBS Act into law as early as this week. The stated purpose of the JOBS Act is to drive the creation of jobs in America by easing access to public capital for emerging growth companies. The JOBS Act moved through the House and the Senate at lightning speed considering the magnitude of changes to existing securities laws, reversing the legislative stalemate leading up to this election year. While important provisions of the JOBS Act will go into effect immediately, other provisions will require further rulemaking by the Securities and Exchange Commission (“SEC”). The JOBS Act has triggered strong reactions by commentators, both positive and negative. Some champion the JOBS Act as a force that will revive the mid-cap company IPO market and strengthen the ability of start-up companies to raise capital, while others caution that the significant liberalization of key securities law provisions creates the potential for abuse and investor fraud.
This Alert provides an overview of the important changes to the securities laws to be effectuated by the JOBS Act and discusses how different categories of market participants will be affected.
Please see full alert below for more information.
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