This Day On The Street
Continue to site
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

Next SEC Chairman Can Prime IPO Pump

NEW YORK ( TheStreet) -- "I don't think more than a few IPOs have happened over the past couple of years below 500 million dollars."

That observation by Robert Kaplan, Jr. -- a partner with Kaplan Voekler Cunningham & Frank -- about the dearth of small initial public offerings by small and mid-sized U.S. businesses, is the best argument for the Securities and Exchange Commission and its next Chairman Elisse Walter to speed up the agency's rulemaking to implement certain aspects the bipartisan Jumpstart Our Business Startups Act, or JOBS Act, signed into law by President Obama in April.

The JOBS act is meant to spur investment in smaller companies by easing securities registration requirements and reporting requirements, while also opening up fundraising away from traditional markets by allowing entrepreneurs to raise up to $1 million through crowdfunding.

Going public without registering

The JOBS Act expands the exceptions to Regulation A of the amended Securities Act of 1933, enabling small businesses to raise up to $50 million in capital through public offerings every 12 months, without registering with the SEC. The old limit was $5 million.

Kaplan Voekler Cunningham & Frank partner Thomas Voekler says "the JOBS Act is getting back to main street investing and getting smaller companies listed on an exchange. We're talking about small to mid-sized companies being able to raise capital, which has been closed to them. The hope is that the SEC can continue the forward press on getting these rules out, to reduce the regulatory burden to raise capital, hopefully on a more Main Street, regional focus."

Sounds great, right? The JOBS Act had very strong support from both parties in Congress, with the Senate voting in favor by 73 to 26, while the House of Representatives voted 380 to 41 in favor, but the SEC is dragging its feet on the implementation of the law.

The SEC is required to implement its final regulations per the JOBS Act within one year of the bill's signing, which makes sense, considering that the bill is meant to jumpstart a very slow economic recovery. However, for Regulation A, Kaplan says "the market is hoping to see the rules finalized by the second quarter of 2014."
1 of 4

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.17 -0.48%
FB $117.83 -0.19%
GOOG $701.77 0.87%
TSLA $213.64 -4.00%
YHOO $37.04 2.90%


Chart of I:DJI
DOW 17,649.58 -1.68 -0.01%
S&P 500 2,049.63 -1.49 -0.07%
NASDAQ 4,719.8330 -5.8060 -0.12%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs