Jumpstart Our Business Startups Act - JOBS

AAA

DEFINITION of 'Jumpstart Our Business Startups Act - JOBS'

An act signed into law on April 5, 2012 that allays the regulations instituted by the Securities And Exchange Commission on small businesses. The Jumpstart Our Business Startups Act, or JOBS Act, loosens restrictions on capital raising for small businesses, such as allowing them to go public with less than $1 billion in annual gross revenue and giving more legitimacy to the practice of crowd-funding (where firms can solicit publicly for investments.)

INVESTOPEDIA EXPLAINS 'Jumpstart Our Business Startups Act - JOBS'

The JOBS Act is geared towards allowing firms with potentially innovative ideas to hit the ground running without the obstacle of strict regulatory requirements. However, given the loosening of restrictions, along with allowing for new sources of capital raising, it comes with new provisions protecting potential investors, such as requiring startups utilizing crowd-funding to register with the SEC and provide information on their financial health and risks.

RELATED TERMS
  1. Follow-On Offering

    An issue of shares of stock that comes after a company has already ...
  2. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  3. Venture Capital

    Money provided by investors to startup firms and small businesses ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. Direct Public Offering - DPO

    When a company raises capital by marketing its shares directly ...
  6. Seed Capital

    The initial capital used to start a business. Seed capital often ...
Related Articles
  1. Can You Handle A Home-Based Business?
    Entrepreneurship

    Can You Handle A Home-Based Business?

  2. Start Your Own Small Business
    Entrepreneurship

    Start Your Own Small Business

  3. The Small Business Jobs Act: Make It ...
    Entrepreneurship

    The Small Business Jobs Act: Make It ...

  4. Reality Check: Why Startups Fail
    Entrepreneurship

    Reality Check: Why Startups Fail

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center