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.