David H. Barber

Document Type



The problems encountered by the business community in raising capital for new or small businesses has spurned implementation of responsive policy and regulations by the Securities and Exchange Commission. As a result of input from a series of nationwide small business hearings, the S.E.C. has recently demonstrated its commitment to aiding capital raising needs. This was accomplished by creating an Office of Small Business Policy to respond to the effects of major new changes to the Securities Act of 1933 which seek to facilitate the process of capitalization of small business. Professor David H. Barber, of Brigham Young University's J. Reuben Clark Law School, examines the ramifications of these new provisions against the background of the 1933 Act's purpose and effect. Specifically, Professor Barber discusses consequences of recent changes adopting a less burdensome form for facilitating first-time offerings of securities, the creation of a new exemption from registration added by the 1980 Small Business Investment Act, and an exception permitting certain prior purchasers of restricted securities to sell their securities under the 1933 Act by utilizing simpler methods.