I am dismayed by the number of pundits, legislators and organizations, claiming to be “small investor advocates”, who misrepresent the JOBS Act as another piece of legislation favoring the Wall Street establishment.
The truth is the JOBS Act invites competition from both smaller financial service firms and investors which will in turn de-monopolize our capital markets and take control away from the self-serving supersized financial conglomerates.
I feel compelled to set the record straight, for the people of this nation deserve to know who really has their best interests at heart.
First of all, the JOBS Act is not a bill to appease Goldman Sachs or to help the rich get richer. It is a bill that serves regular hardworking Americans who, for nearly 80 years, have not had the same investing liberties as wealthy Americans. Deemed by the Government as not sophisticated enough to understand private company investing, small retail investors have been legally prohibited from putting their money into some of today’s hottest growth companies.
Instead, they are forced to sit on the sidelines and wait until these companies complete their IPO. Unfortunately, because companies are no longer going public in the earlier stages of their growth cycle, smaller investors can do nothing but watch these companies increase in value from afar. All the while angels, VCs and accredited (aka rich) investors reap all of the appreciation during a company’s climb to the public markets. Maybe someone can explain to me the logic behind laws that permit average citizens to purchase stocks only when “sophisticated” investors are ready to dump them.