IV. The JOBS Act’s Implications
The Act makes it easier for smaller companies to gain access to financing through the public market. These small companies will be able to expand, generating more jobs and leading to economic growth. However, some companies may not be ready to go public from a disclosure standpoint. If a small company wants to have the advantage of being a publicly traded company, the Act provides a way to do that, but there is much more regulatory scrutiny involved, so the company must be sure it has an experienced general counsel and an effective corporate secretary able to file all the necessary paperwork and deal with required disclosures. Companies should be wary and make sure they are properly prepared to go public, and not do so just because they have this window of opportunity. It is too soon to tell what will happen when the capital markets are made more accessible to smaller firms. (more…)