Title IReopening American Capital Markets to Emerging Growth Companies

This section of the JOBS Act sets the stage for all that comes later. It defines an “Emerging Growth Company” as a security issuer with less than $1 billion in revenue in the most recently completed fiscal (as opposed to calendar) year. It also states that any company with less than a billion in revenue that issued common stock prior to December 8, 2011 is not eligible to be treated as an emerging growth company. Certain disclosure requirements are lifted. The “firewall,” or limitations between security issuance activities (underwriting) and research, is lifted for EGCs.

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