Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6785972480038248448
#SEC Official Warns on #SPAC: #SPAC #Boom is #Over: Special-purpose acquisition companies have significant, undiscovered issues, says the acting director of the SEC’s Corporation Finance division:
#SPAC’s: What You Need To Know: https://lnkd.in/eaQMnvE :
Barron’s The #SPAC #Boom Is #Over: The hottest market in history for special-purpose acquisition companies, or SPACs, has slowed down markedly as felt both in the relative dearth of new SPACs filing to go public and in the stock-price performance of already listed SPACs. SPACs list on a stock exchange in an #IPO just like any other company. However, the so-called blank-check companies don’t have any business operations when they list. SPACs are just publicly traded cash shells with backers—called sponsors—responsible for identifying and negotiating a merger with a private operating company, usually within two years. Cash raised in the IPO sits in a trust earning interest. Once the companies merge, the operating company takes over the SPAC’s stock-market listing—the ticker symbol usually changes—and puts the SPAC’s cash toward investing in the business, buying out existing investors, or other uses.
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