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New IPOs Stretch Idea of 'Startup'

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  • Description

    FBN's Liz MacDonald defines an 'emerging company' under the JOBS Act.

  • Duration 2:23
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I contend with the theme on the IPO spot below not the only one companies have been around for years just now going public is start -- But again -- -- hunt for years this is a loophole all investor should be aware of in some of these.

Upcoming IPOs and Elizabeth MacDonald joins us now in Mac's bottom lining you've been investigating his (%expletive) -- fender guest type -- and -- isn't an iconic.

-- the guitar maker and gathering -- -- up and coming emerging company.

That's right I want somebody that's been around since 1946 and various iterations.

And there's a reason why there's been a new IPOs coming -- the market there being called emerging companies because.

Of this new law that went into effect last April it's called the jobs -- -- sure for the jump start.

Our business startups -- the idea being was clear -- the brush of regulation getting in the way of companies who want to go public and create jobs we know what some of these ideas and good on paper but then they're also the fire engine red flag so.

Of course -- -- -- -- like we talked about that's been around in various forms since 1946.

I think five below with cells items for teenagers at five bucks or below the what is -- that -- and -- detailed careful what I think is -- -- may get a crack at some -- -- as some great companies who knows but there's -- danger -- here for investors.

Caveat and -- be where the jobs act IPOs because look.

You gonna see a lot of shell companies coming to the market that's the SEC is now.

Bracing for this so -- reverse mergers or trust companies.

That basically had no profit -- to -- -- -- That companies who come under that -- into the IPO market under the jobs that Democrats are filed financial filings for two years are exempt from accounting rules.

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Our that's about our our investment copier in aggregate -- so --