Sec To Permit All Companies To Record Secretly For Ipos

But, some critics also believed that the law allowed companies and the SEC to have a generous discussion about proper disclosures and accounting methods.
Nonetheless, the JOBS Act had raised several debates with skeptics including some securities regulators worrying it diminished investor protections.
The Securities and Exchange Commission (SEC) said the tool, currently restricted to companies with gross revenues of $1 billion or less, would take effect from July 10.
Wall Street’s top regulator said on Thursday it would allow all companies to file paperwork confidentially for initial public offerings (IPO), in a move designed to revitalize the market for share sales.
Twitter Inc, one of the earliest companies to file confidentially under the then-new JOBS Act, had led to debates, with critics saying that the law denied investors time to digest a company’s financial information and eroded market transparency.

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