JOBS Act Becomes Law

On April 5, President Obama signed the Jumpstart Our Business Startups Act (or JOBS Act) into law, intending to facilitate initial public offerings (IPOs) and expand opportunities for raising private capital.¹

Some key features of the JOBS Act include:

• Easing auditing and disclosure requirements for small and mid-sized companies in IPOs and during a post-IPO transition period
• • Requires only two, instead of three, years of audited financial statements in IPOs
  • Eases certain Sarbanes-Oxley Act requirements
• Increasing the ability of participating underwriters to publish research reports around the time of the IPO
• Facilitating private capital formation
• • Lifts the prohibition on publicizing certain private offerings