SEC to relax registration requirements
Abstract: An initial public offering (IPO) isn’t the only way a private company would have to start filing certain documents with the SEC. Companies are required to register with the SEC in accordance with the Securities Exchange Act of 1934 after they reach a certain number of shareholders and a certain level of assets. To enable private companies to stay private longer (and conduct an IPO when they’re ready), the Jumpstart Our Business Startups (JOBS) Act of 2012 relaxed the registration requirements. And the SEC is preparing to finalize proposed regulations implementing the new requirements. This article discusses the SEC’s higher reporting thresholds and treatment of equity compensation.