Interpreting JOBS Act Ambiguities

Law360, New York (September 17, 2012, 12:07 PM EDT) -- The U.S. Securities and Exchange Commission recently issued a set of answers to frequently asked questions, clarifying a number of ambiguities regarding the activities of underwriters and research analysts in connection with offerings by emerging growth companies (EGCs) under the Jumpstart Our Business Startups Act (the “JOBS Act”).[1] We summarize and analyze the key points below.

Testing the Waters

The FAQs address a technical concern that “testing the waters” under the JOBS Act might violate the requirements of Rule 15c2-8(e) under the Securities Exchange Act of...
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