On Wednesday, March 22, Nasdaq General Counsel Ed Knight testified before the House Financial Services subcommittee on the positive influence the JOBS ACT has had in spurring more companies to go public. However, in Nasdaq’s view, there is still a lot more that needs to be done in terms of regulation and proxy reform to create an optimal environment.
Knight was part of a larger panel of witnesses that provided testimony to the subcommittee. Other testimony was provided by Raymond Keating, Chief Economist, Small Business & Entrepreneurship Council, Brian Hahn, Chief Financial Officer, GlycoMimetics, Inc., Andy Green, Managing Director of Economic Policy, Center for American Progress, and Thomas Quaadman, Vice President, U.S. Chamber of Commerce. The subcommittee's objective was to "examine the impact of the Jumpstart Our Business Startups Act (JOBS Act) on the U.S. capital markets and the JOBS Act's effect on capital formation, job creation, and economic growth."
During Ed Knight's remarks, he said, “There is no doubt that the JOBS Act did ease some unneeded strictures that applied to public companies. Still, despite these improvements and the benefits of going public to private companies, their employees and the investing public, many private companies remain reluctant to take the next step and go public.” Ed also cited several examples in his testimony of the vital role that public markets play in job creation including, Amazon.com which has contributed over 100,000 jobs to the economy since going public. “We think earlier stage companies should have the opportunity to go public not only to create jobs, but get the investing public to grow with them,” said Knight.
Watch his full testimony here. (begins at 38:42)
For a copy of the memorandum from the subcommittee, please click here.
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