Upon the announcement of Twiitter's IPO, it was only made in the standard format of the site of 135 chaacters. The short message systems is one of the hallmarks of the social media giant, but the brevity of the language and its effect on the investor market is still something yet to be seen.
Under the JOBS Act of 2012, companies that intend to go public are allowed to retain their financial information until twenty one days prior to the start of their marketing or 'pitch' period for investors. This is allowed to companies that earn less than USD1 billion in annual revenues. This floor amount was applicable to about 90% of public offerings in the last twenty years and allows firms to work with regulators to go about their business away from the limelight and scrutiny of the public.
This can benefit the social media platform in light of recent social media IPOs that have become issue laden, such as Facebook, Zynga and Groupon. The company is hoping to keep everything at a even keel during its public offer or reduce the probability that any one of its employees would make a statement that would affect investor sentiment.
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