To find out, all you need to do is read this story in The Wall Street Journal by Michael Rappaport, headlined: “In Wake of Groupon Issues, Critics Wary of JOBS Act.”
The gist of the article is that an obscure provision in the
JOBS Act, set to be signed this week, would let companies confidentially run their initial public offering prospectuses by the Securities and Exchange Commission before they’re filed for all to see.
The idea behind the provision, according to the article, is that it would give companies with revenues under $1 billion more confidence in filing an IPO without the risk of their initial filing getting run through the public wringer.
As a result, there would be more IPOs, which in turn would translate into more jobs.
To which I say: Never mind that some lobbyist got paid to come up with this. Worse — it found its way into the bill.