The law that allowed Twitter to file its initial IPO documents confidentially is called the Jumpstart Our Business Startups, or JOBS, Act. President Barack Obama signed the law in 2012. It is designed to make it easier for small businesses and startups to grow and create jobs.
Wedbush Securities analyst Michael Pachter believes Twitter's decision to tweet about the confidential filing signals the company's intention to complete the IPO fairly quickly. "The market is hot and the end of the year is usually is a good time to go public," Pachter said. "I think we will get to see the documents by Halloween and the IPO will be done by Thanksgiving."
Regulators at the Securities and Exchange Commission ultimately dictate the timing of IPOs because they must sign off on all the documents before the stock can be sold.
Twitter was founded by Jack Dorsey, Biz Stone and Evan Williams while they were working at a podcasting service called Odeo that never gained traction.
Dorsey went on to found Square, a mobile payments company, and serves as Twitter's chairman. Williams, who previously sold a blogging service to Google, stepped down as Twitter's CEO in 2010 and is now working on a publishing platform called Medium. Stone left Twitter in 2011. His latest startup, announced in May, is called Jelly Industries.
Associated Press Writer Ken Sweet contributed to this story. Ortutay reported from New York.
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