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.