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President to Sign JOBS Bill

April 2, 2012
Plain English Version

President Obama will sign the JOBS bill passed by the House and Senate. The bill makes it easier for entrepreneurs to raise funds for new businesses.

It does this see earlier story by defining “emerging growth” companies. It frees them from certain financial disclosure and governance rules for up to five years. However, companies must still file basic information with the Securities and Exchange Commission

The bill was supported by both parties.

Encouraging people to invest in start-up enterprises with few controls is called “crowd-funding.” Some critics are concerned that the law will result in stocks being sold to unwitting amateur investors.

A consumer advocate said, “We may rue the day this bill passed.”

The New York Times

 

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