“JOBS” Openings: Ordinary Investors Need Not Apply
My fellow Americans, you may have missed Jonathan Weil’s recent piece on Facebook finger-pointing amid all the fuss about party politics this past week. If you want a break from the constant talk of jobs and political rancor leading to our November date with voting machines in the U.S., the Bloomberg article may pique your interest. More on this later.
Indeed, we have been hearing a great deal about jobs lately, particularly the kinds that come with a paycheck. But there is another JOBS story continuing to make the rounds: The Jumpstart Our Business Startups Act, also known simply as the JOBS Act. CFA Institute commentators have been blogging about this controversial law since its inauspicious debut in May.
The upshot of these communications is our serious and continuing concern that the “light-touch regulation” offerings potentially permitted under the JOBS Act — with fewer disclosures and unfettered solicitation of “little guy” investors — will prey like wolves on those who think they can adequately assess the risks and find the next Apple (APPL).
We’ve all seen what can go wrong with an IPO, even the more regulated variety such as the recent Facebook (FB) offering. But the interesting truth about the FB disaster, as pointed out in Weil’s terrific article, is simply gasoline to this JOBS Act flame. Mom-and-pop and small-cap investors everywhere: Hope you are paying attention.
