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Tuesday, August 7, 2012
Risk Management Precautions and the JOBS Act
As numerous little known companies have begun to get ready to make the leap to publicly traded status, following on the heels of Facebook's IPO last month, by making investors aware of the risks inherent in their smaller size and lack of experience in the public exchange. However, going beyond those more traditional risks that come with making their entrance into the U.S. stock exchange, many have also begun to include the Jumpstart Our Business Startups (JOBS) Act as a potential risk as well.In fact, more than a dozen companies did so just last month, citing that the lack of proper disclosure requirements that come in compliance with the act may come as a deterrent to many potential investors.
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