Search Results for keywords:"SPAC"

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Search Results: keywords:"SPAC"

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2021-03337 — Self-Regulatory Organizations; New York Stock Exchange LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend the Requirement Applicable to Special Purpose Acquisition Companies Upon Consummation of a Business Combination Concerning Compliance With the Round Lot Shareholder Requirement
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February 19, 2021
Type:Notice
Citation:86 FR 10379
Reading Time:about 14 minutes
The New York Stock Exchange (NYSE) has proposed a rule change to give special purpose acquisition companies (SPACs) 15 additional days after completing a business combination to fulfill a specific shareholder requirement. This change aims to address the challenge SPACs face in confirming the number of shareholders due to last-minute decisions by shareholders to sell or keep their shares. The Securities and Exchange Commission (SEC) is considering whether to approve this proposal, expressing concerns about the potential risks of allowing SPACs more time to prove compliance, which might lead to non-compliant companies remaining listed temporarily. The SEC invites public comments while evaluating the proposal's implications on market fairness and investor protection.
Simple Explanation
The New York Stock Exchange wants to give special companies called SPACs a little extra time to make sure they have enough people who own their stock after they merge with another company. The government is thinking about whether this is a good idea and is asking people to share their thoughts.
2021-02010 — Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Order Approving a Proposed Rule Change, as Modified by Amendment No. 1, To Exclude Special Purpose Acquisition Companies From the Requirement That at Least 50% of a Company's Round Lot Holders Each Hold Unrestricted Securities With a Market Value of at Least $2,500
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February 01, 2021
Type:Notice
Citation:86 FR 7757
Reading Time:about 18 minutes
The Securities and Exchange Commission has approved a rule change proposed by The Nasdaq Stock Market LLC. This change allows special purpose acquisition companies (SPACs) to be excluded from the requirement that at least 50% of a company's round lot holders must each hold unrestricted securities valued at a minimum of $2,500 at the time of the company's initial listing. Nasdaq believes that this rule is not necessary for SPACs, as their structure and investor base differ significantly from typical operating companies. The approval aims to align Nasdaq's standards more closely with those of other exchanges while ensuring investor protection and market liquidity.
Simple Explanation
The Securities and Exchange Commission (SEC) said it's okay for special companies called SPACs to have a different rule when they first join the stock market. These companies don't have to make sure that half of their investors own a certain amount of their stock, like other companies do.

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