The imminent Jump-start Our Business Startups (Jobs) Act (HR
3606) will make life easier for issuers but may expose banks to
litigation risks, lawyers have warned. It also indicates how
the trajectory has changed in regards to regulatory
The Jobs Act, expected to be signed by US President Barack
Obama later this week, fosters capital raising for companies
both wanting to go public or stay private. It is widely
understood to be the most important financial legislation since
One aspect of the Jobs Act allows investment banks to publish
market research around the time of an IPO for companies with
less than $1 billion in annual revenue so-called
emerging growth companies (EGCs). This was previously
forbidden, but it is not clear that a lifting of the
restriction will make much difference.
Research relating to EGCs could boost market confidence prior
to an offering, but publication of these materials...