JOBS Act

The Jumpstart Our Business Startups Act, signed into law in 2012, relaxed SEC regulations to make it easier for small companies to raise capital and go public. Among its most significant provisions was the legalization of equity crowdfunding, allowing non-accredited investors to buy shares in startups for the first time. The act also created the "emerging growth company" category, giving smaller firms a five-year grace period with reduced reporting requirements.