Israel,Goldman Sachs,SEC Mary Schapiro,Barack Obama JOBS Act ...
wolfblitzzer0.blogspot.com/.../sec-mary-schapirobarack-obama-continue...
by Tony Ryals
Jun 12, 2012 - “This would be better known as the bucket-shop and penny-stock fraud reauthorization act
of 2012,” said former Securities and Exchange Commission official Lynn
Turner. But if her word isn't enough, perhaps we should listen ...NJ's Garrett says Republicans to push Jobs Act expansion
Hunterdon County Democrat - NJ.com-Oct 3, 2013
“While the Jobs Act was a great success and is already having a ... stock prices in pennies in 2001 slowed trading activity in less-active stocks.
http://www.usatoday.com/story/money/business/2013/10/23/crowdfunding-ipo-sec-jobs-act/3169395/
Up until now, crowdfunding has just been a way for consumers to give money to inventors concocting newfangled things ranging from Big Wheel bikes for grown-up and smartphones. But soon, it could become a way to actually invest in those companies.
The Securities and Exchange Commission voted unanimously to propose rules that, for the first time, would allow investors to buy stock in companies over the Internet using a crowdfunding exchange. These rules could reinvent the way that companies raise money by allowing them to bypass the traditional costs of going public, which usually involved hiring costly investment bankers and accountants.
The SEC's vote on so-called equity crowdfunding is in direct response to Title III of the JOBS Act, passed last year, in which Congress is looking for a loophole to allow smaller companies to get an exemption from the strict rules controlling the sale of securities to individuals. Congress is hoping that by using Internet crowdfunding, small and promising companies could gather capital needed to grow and expand from a wide pool of investors. These companies could, in theory, raise money they need to grow well before they could afford the relatively high costs of a traditional initial public offering.
CROWD FUNDING: Keep risks in mind
The rules would create a new financial entity, called a funding portal, which would be a Web site that would electronically connect investors with young companies looking to raise money. The SEC's approval is needed since such sites are banned today in order to protect investors. Currently, such Web sites would need to be registered with the SEC as a broker, giving the SEC power to oversee the entity. Furthermore, such private sales could only be offered to "accredited investors," or wealth investors savvy enough to know the risks.
With the new rules, the SEC is looking to open the concept of crowdfunding to the public, while still offering investor protection. The new elements of the rules would cap any company's ability to raise money through crowdfunding to $1 million every 12 months. Investors on the other hand would only be permitted to invest the greater of $2,000 or 5% of their annual income or net worth every 12 months, as long as their net income or annual income is less than $100,000. For investors with net income or annual income of $100,000 or more, investors would be able to invest 10% of that amount every twelve month period in crowdfunding opportunities. Securities bought through portals would have to be held a year before sold.
The companies selling stock through portals would also face restrictions. Companies would have to disclose details on any investors or officers owning 20% or more of the company. Financial statements of the company's operating history plus a tax return, not to mention details about certain financial dealings between officers and outside companies would need to be disclosed.
Even after the SEC vote, equity crowdfunding doesn't become a reality. There will be a 90-day period for the public to issue comments. The SEC will then review those comments and make a final determination.
The process of approving crowdfunding has taken much longer than most expected as the regulator balances the need to help companies raise capital, but protect investors from scams. Crowdfunding today is rife with examples of consumers donating money to entrepreneurs, only for those people to take the money without ever producing the product or service that was pitched.
"Though expected it was a poor decision by the SEC. Unfortunately by approving crowd funding for unaccredited investors under the Jobs Act, it will turn "salami" scams, where small amounts are defrauded from investors, into the new normal," says Andrew Stoltmann of Stoltmann Law Offices. "This is not a good day for financially unsophisticated investors who will be targeted unrelentingly by stock promoters."
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The JOBS Act Disaster Shows the Perils of Bipartisanship - Pat ...
www.usnews.com › Opinion › Pat GarofaloAug 12, 2013 - President Obama was out on the road recently delivering a series of ... But as Bloomberg News reported last week, the JOBS Act in reality is a lot less ... as the bucket-shop and penny-stock fraud reauthorization act of 2012.".The JOBS Act: A License to Steal? - Forbes
www.forbes.com/sites/jakezamansky/.../the-jobs-act-a-license-to-steal/Nov 14, 2012 - The JOBS Act passed this past year was touted as legislation that would promote ... “In its prospectus, a penny stock named Caribbean Pacific ... us that the JOBS Act creates a massive amount of risk for the American investor.JOBS Act Update: Penny Stock, Pound Foolish | WillisWire
blog.willis.com/2013/01/jobs-act-update-penny-stock-pound-foolish/Jan 3, 2013 - JOBS Act Update: Penny Stock, Pound Foolish. by Ann ... President Obama signs the Jumpstart Our Jumpstart Our Business Startups ActYes, Virginia, This Is Obamas JOBS Act | Matt Taibbi | Rolling Stone
www.rollingstone.com/.../yes-virginia-this-is-obama-s-jobs-act-2012041...Apr 12, 2012 - President Barack Obama signs the JOBS act in the Rose Garden of the White House. ... It's bringing us back to the penny stock era.".
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