Title: Obama Signs Bill to Help Companies Go Public
Source: CNN Money
Link: http://money.cnn.com/2012/04/05/smallbusiness/ipo-bill/index.htm?iid=SF_E_River
Source: CNN Money
Link: http://money.cnn.com/2012/04/05/smallbusiness/ipo-bill/index.htm?iid=SF_E_River
The topic of the article was about President Obama's recent act of signing into law a bill that is intended to make it easier for companies to come
publicly traded through allowing audits to be bypassed and requiring
disclosures for investors. The new bill
is called Jumpstart Our Business Startups (JOBS) Act. Senate Majority Leader Harry Reid says “This
bill is far from perfect, but it’s a good bill”. Unfortunately the majority of all consumer groups disagree
with this new bill. Some of the controversy relates to the fact that the bill disregards
the rules and regulations of the Securities and Exchange Commission (SEC). SEC
enforces all size, new, business to hold an Initial Public Offering (IPO) -
where the first sale of stock is sold to other companies. This new bill is
accused with the potential of failed IPOs and investor fraud because of the advertisement
online. However, Obama disagrees and says: “For start-up businesses, this bill
is a game changer. Because of this bill, startups and small businesses will
have access to a bigger pool of investors”.
Probing Question: What type of businesses do you think will
benefit from this newly passed bill, Jumpstart Our Business Startups?
I believe that the businesses that will benefit from the JOBS bill will be the smaller businesses that soon hope to become bigger. This bill will help them gain investors so that they can expand their businesses and make more money. The first stock price for the business will probably be lower, but as the company expands and makes new products, the price of the stock will eventually go up, helping the company to gain even more money. I think it is smart of Obama to do this because if the stock prices go up, then companies are making more money and there is more money flowing in the economy, so the economy will get better. Along with smaller businesses, larger companies will benefit as well, but not as much because they are already ahead of the game, so more people will be wanting to buy the other stocks so that they can help the businesses get better.
ReplyDeleteAfter doing some research, i believe that private businesses will benefit the most from this bill. I believe this to be true because this bill aims to allow private businesses to stay private longer. Allowing private businesses to stay private longer will in turn help them make more money. Like Sydney said above, i believe Obama is very smart for passing this bill because it is a step forward in bettering our economy.
ReplyDeleteI agree with both Sydney and Michaela. I think that private and small businesses would benefit from the JOBS act. Small businesses would be able to expand and private businesses would be able to stay private. This will put more money into our economy, allowing it to grow and stabilize. This will encourage the public to buy and sell company stocks, providing more revenue for our country. I agree with Michaela, this is a good idea and Obama is making a good choice by allowing the JOBS act to proceed.
ReplyDeleteI agree with the three posts above. I believe that this bill can do a lot of good for the economy, as it will help small businesses excel and make more money, and as Sydney explained, pump money into the economy. If the new company's stock can be traded sooner and easier, then the company will most likely be able to get a better financial start. If the business wants to expand, then this bill can really help, as they can trade stocks with a "bigger pool of investors", so they can advertise, create new products, or hire more employees and expand. I too think it is a great bill that Obama proposed, and I think it will definitely help-out the economy and really help small businesses to expand.
ReplyDeleteI agree with all of my classmates. This bill will help smaller businesses to expand and be more competitive with larger businesses. If the privately owned business is allowed to trade stock earlier, than that business will be able to flourish much more quickly. When these small businesses sell stock, they are in turn expanding their company because of all the people investing. The more investors a company has, the quicker that company is able to grow. As stated by classmates, the economy will also recieve a boost from this bill. With more money being spent on expanding businesses, the economy will most likely see a turn for the better.
ReplyDeleteI agree with the classmates that this will help small businesses. I did some research and it said that this act will be used to create funding for small businesses by easing security regulations. This will allow them to as Nate said, compete with bigger businesses. If they have the funding needed to start up a business then it will stimulate the economy and better the economy. The only reason for people to be opposed that I read about was fraud. Fraud is a big deal but I think small business owners will look past it to be able to make their business flourish. I think that in the end every business will benefit from this bill because the economy is a single flowing system filled with many other little systems and if the whole system gains another little system then the better for the whole.
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