How Twitter Filed IPO Papers Confidentially

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Sept. 13 (Bloomberg) -- Peter Cook reports on an anticipated Twitter IPO. He speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Chief washington correspondent peter cook joins us with more on the jobs act.

They have to disclose more under this new law that was passed?

The law passed in april of 2012, bipartisan, signed and -- into law by the president was to allow just this -- the emerging growth companies, and twitter qualifies, allows them to file confidentially so they can fix any problems the sec has in private.

They can resolve some of the issues in private without the public way union.

It is an idea that they can test the waters without all the public pressure right now.

The idea again was to try to promote initial public offerings, promote more of these companies to go public, because ultimately lawmakers in washington thought it would be good for the u.s. economy and jobs.

Twitter is not the first to do it this way.

Not at all.

We have several examples.

The majority, according to ernst & young, of emerging growth companies are doing it.

In the first year of the jobs act, 63% of those emerging growth companies, less than a billion dollars in total gross revenue, are now filing confidentially.

The average first-day gain, 15% . for those who file publicly, up just 12.5%, so there has been some benefit historically speaking.

It is controversial . some critical, saying the public deserves this kind of information as early as possible.

No reason a company as big as twitter hosted he should be disclosing this -- should not be disclosing this publicly.

One of the people really loud ring for this jobs act to be passed -- any chance congress would take it up and reconsider the act?

Several critics, people questioning whether or not this was a bad deal for investor down the road.

But there's also a tremendous amount of support, particularly among the house republican leadership.

Eric cantor is a big backer of the legislation.

So, no real effort and congress to undo this, but you can be sure the twitter filing will definitely raise some eyebrows and questions in washington.

Peter, thank you so much.

Chief washington correspondent peter cook.

I want to bring in ian, cofounder and partner of grey croft -- greycr oft partners.

Ian, great to see you.

A lot of questions with as twitter ipo.

This text has been automatically generated. It may not be 100% accurate.

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