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At the same hearing, Lynn Turner, formerSEC chief accountant and accounting consultant at LitiNomics, stated that by this standard, 98 percent of IPOs since 1970 would have been considered “emerging growth companies.”
The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the high-profile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise.
It's a common fault of many start-up ventures that they pay more attention to raising capital than to building a viable business. I speak from firsthand experience. A dozen or so years ago I worked in a couple of Internet start-ups that had big plans and tried to raise big money. In one of them we burned through around $10 million of other people's money without a single dollar in revenue before the investors finally pulled the plug.
According to the U.S. Small Business Administration, there are at least 10 reasons for small business failure. Lack of funds is one, but the other nine are lack of experience, poor location, poor inventory management, over-investment in fixed assets, poor credit management, personal use of business funds, unexpected growth, competition, and low sales. The JOBS Act won't do much about these.
Originally posted by getreadyalready
reply to post by Drew99GT
So, more importantly, how can the average person exploit this act? I know the giant corporations will already have teams of lawyers and researchers finding the ways to exploit and get richer from any new law, but how does an average person do it?
Can I now start an "emerging growth" company, with a mere business plan and address, and list it as an IPO and get millions of dollars in capital to grow my business?
Originally posted by Drew99GT
From the Seeking Alpha article above:
"It is sad that the only time, apparently, that Democrats and Republicans can come together in a spirit of bipartisan cooperation is when they are both completely wrong about everything."