This was the topic of a senate hearing held on Wednesday. The hearing consisted of testimony from 4 experts, amongst them, Ilan Moscovitz from the Motley Fool.

A webcast of the testimony as well as the written statements is available here:

Examining the IPO Process. Is it Working for Individual Investors?

If you have an hour, it is very interesting to watch. You get a nice overview of what is involved in the IPO process and how the rules and regulations affect the various people involved, including you, if you have ever invested in a new company. The testimony as a whole does a very good job of giving you a picture of all sides of the story.

What is especially disconcerting to me is the rollback of regulations and requirements which were part of the JOBS act recently passed. While there is a lot of talk about changes being made to protect the "individual investor", it appears the people who take the time to provide input to the legislators are overwhelmingly the people who have a vested interest in protecting the status quo.

There is no organized voice for the "individual investor" so it is much harder to get a critical mass. But, if you are concerned, it is easy for you to provide your input. You might think it won't make any difference, but if enough people really care enough to take a few minutes to speak up, it will be less easy to ignore their needs.

The Motley Fool is trying to raise awareness of the issues in their Congressional testimony and in articles like this one.

These Jobs Are Not For You

I highly encourage you to at least take the time to read them.

Even better, take a few minutes to let the SEC know what you think. They want to hear from you. Heres a link to a form they've provided requesting your feedback. If you feel like you have been impacted by unfair IPO issues such as lack of access to all information about the state of Facebooks business, incorrect IPO accounting at Groupon or the collapse of "Reverse Merger" Chinese company investments, this is the time to tell your story so they can put a face on the impact of easing the regulations and requirements for companies who wish to sell shares in our public markets.

Comments About The JOBS Act


Laurie Frederiksen
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