July 27, 2012
There are 2 comments about what needs to be changed in this ACT -
1. If a company decides to take advantage of the new accounting exemptions as per JOBS Act in order to raise capital, then that IPO money should go to the company, not to insiders who want to get rid of their shares. Additionally, there should be a rule that says that insiders have to hold onto their shares until at least half a year after the company is subject to normal accounting rules. (This would be similar to how common "lock-up" contracts worked before the JOBS Act was passed). If insiders want to sell, then that company should first get its accounting in order.
2. Companies that decide to take advantage of the JOBS Act's accounting exemptions should clearly notify investors that they're doing so at the beginning of financial filings so that investors know what they're buying.