New Rule Coming September 23rd 2013 for Business InvestingLegal Compliance Resource
September 18, 2013 — 995 views
Coming this Monday, corporations will be allowed to make their stock offerings public along with their debt offerings without having to pay the additional charge of registering it legally. This will reduce company costs by a large volume and will cause a rise in dollar value. This policy has been last seen right after the Great Depression. Close to nine hundred billion dollars have already been raised in the past two years here.
This means that this massive amount of money--about forty percent of the country’s capital--will be directly pumped into the markets. Since investment has always caused a multiplied effect in terms of growth, this much extra cash flow shows immense opportunities for the economy. The dollar has been strengthening as of late, and is expected to further strengthen after the FOMC meeting where different quantitative easing and tapering strategies will be used to continue its growth.
Country’s Currency and Positive Effects
Though the rates are going good, there needs to be certain action taken so that the value goes up consistently for a long period of time. This will ensure the revival of the economy. The strategy of removing government tax so that IPOs and debt offerings can be made public is an age-old technique that has worked for the country before. It will not only bring about direct investment capabilities but also an improvement in peoples’ sentiment, which defines fundamental readings.
Unemployment rates are also technically not remaining at high levels. The fact is that there are fewer cases reported that show the need for a job, and therefore the statements do not directly show the improvement. The policy that exempts companies from registering, however, requires that the investors in shares be people who are worth a million dollars a piece. This means that the highest class of people in terms of investment capabilities will be motivated to pump in money into the country.
Increased Cash Flow Likely to Fuel Economy
The increased cash flow will bring about some great changes. This 23rd of September is probably going to be the advent of a new era in terms of economic growth and many people are looking forward to it. On top of this, Bernanke’s speech will once again have direct fundamental effects on the foreign exchange and commodities markets. New policies and other actions are likely to fuel the country’s currency so that it continues steadily on its upward climb.