What the Jobs Act Means for the IPO Market

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Sept. 23 (Bloomberg) -- Former Nasdaq Vice Chairman David Weild discusses how public policy affects the IPO market with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

If anyone wants to know about the legislation that affects a change in the financial industries, you are the guy to talk to.

I did a whole series of studies be getting back into thousand eight -- 2008. we wrote one called "wake up for america." this allows general solicitation on private placements.

This is an absolute seachange.

What are private placements?

Private placements aren't sales of securities to -- our sales of securities to accredited buyers.

Under the theory that accredited investors are more sophisticated and can withstand the personal risk of more risky securities that are not publicly registered with the securities and exchange commission.

They are able to solicit directly to the investor community.

I would not be able to come in and talk about issuworks.

When we were in the military a private placement.

That is the sick never considered.

If -- significance of it.

If there was one non-accredited ambassador, everyone in that room if i talked about our private placement would have a rescission right so as a consequence it would cast up all over the ability to get up and talk about what they do.

Will that lower the cost for these people to raise money?

It will enable lots of companies to raise capital more effectively and they could have.

I am not sure they will cut down the fees that they are charged but i do think there will be more money that finds its way into entrepreneurial companies and that is terrific for the economy.

It will help turbocharge the entrepreneurial economy and a big way.

What we have more initial public offerings?

Off -- ultimately we will.

That is something we fought quite a bit over.

One of the key issues in the ipo market is these markets are so efficient that once your public, you need to continue to create visibility and market that is structured with only a penny, the smallest you can trade stock in and two percent share in the institution market.

There is not enough money to get behind in market small-cap companies which is one of the things we are focused on.

What is issuworks?

We are making it easier or entrepreneurs to go public and create the visibility they need and make it easy for investment banks who are our clients to make a much broader job of marketing shares institutions.

There is a focus on wall street and the top 100, two hundred

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


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