This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

What the JOBS Act Means for You

By Rory Eakin, COO and co-founder of CircleUp

NEW YORK ( TheStreet) -- Today at a Joint Committee Hearing in Congress, legislators will be hearing from small business owners about the importance of implementation of the Jobs Act, the much publicized, and criticized (including from TheStreet here and here ) law passed by an overwhelming bipartisan majority this spring. Despite being written into law more than four months ago, many of the key provisions of the law have not yet come into force.

The most pressing issue is when the law will come into effect for the hundreds of thousands of small businesses seeking to raise capital from accredited investors (investors who make more than $200,000 a year as an individual, $300,000 per year as a couple or have $1,000,000 or more in net assets excluding their home). Currently, these businesses are prohibited from advertising a capital raise (called general solicitation).

The law instructs regulators to remove the prohibition against general solicitation, but also gives them leeway to define adequate rules to protect investors once this advertising is permitted. The rules were supposed to be in place more than two months ago, yet a final timetable has still not been announced.

Exactly when, and how, private companies can advertise for investors is important for all Americans -- whether they are investors, small business employers, consumers of products and services from local businesses across the country or simply care about job creation. Small and start-up businesses account for half of all private-sector employment in the U.S., and two out of three jobs created in the last 30 years. They are a critical driver of our national economy, and the future large employers of tomorrow.

Investors: For investors, non-institutional private investing is a $50 billion market that operates with incredible inefficiency. Without open communication, investors must spend time developing relationships and networking to gain access to "deal flow" that they may not otherwise ever find, let alone gain access to. Private equity and venture investments occupy an important place in a well-diversified portfolio for many of the largest investors in the country, but -- in part because of the lack of information -- these investments are largely beyond the reach of most investors (and are costly, with investors paying significant fees).

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.67 0.97%
FB $80.61 0.16%
GOOG $540.96 -0.29%
TSLA $247.43 0.74%
YHOO $43.50 -0.41%

Markets

DOW 18,250.77 -34.97 -0.19%
S&P 500 2,130.75 -0.07 -0.00%
NASDAQ 5,099.8510 +9.0570 0.18%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs