Hot SPAC Market Could Freeze After Potential SEC Rule Change

that about 300 SPACs have hit the public markets, raising nearly $90 billion in cash, more than all of last year’s record volume. But the high-flying industry could come to a temporary halt. The reason? A potential change in accounting for some SPACs demanded by the SEC.

In the SPAC business warrants are a crucial goodie-bag for investors that provide potential windfalls without risking much capital.spoke with say the SEC has remained vague on how it will treat warrants. The uncertainty has stopped all new SPAC offerings as accounting firms will not sign-off on any financial statements or company audits until they receive clarity from the government.

Some experts suspect the SEC has intentionally created confusion in the industry to temporarily slow the soaring SPAC market so the agency can catch up on regulatory audits and governance. The SEC declined to comment.alerting the market of its concerns about the current accounting of SPAC warrants and the prospective need for issuers to correct their financial statements.

The SEC’s request for review of SPAC warrant accounting is likely just the tip of the iceberg. Given the frenzy that has engulfed the SPAC market over the past year and the complexity of these vehicles, it won’t be surprising if the SEC finds more flaws in the volumes of paperwork that the market spits out daily.

one of my faves... man even if boro 5 bucks from someone pay it back you never know whwn you may need 5 bucks again...

good

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Hot SPAC Market Could Freeze After Potential SEC Rule ChangeThe SEC could be taking a fire extinguisher to the red hot SPAC market. Uncertainty around rules has stopped all new SPAC offerings as accounting firms will not sign-off on any financial statements or company audits until they receive clarity from the government.
Source: Forbes - 🏆 394. / 53 Read more »

Digital media companies pump the brakes on their rush to go public as SPAC market coolsDreams of going public in January and February have been put on hold for digital media companies as SPACs dry up and investors become more conservative.
Source: CNBC - 🏆 12. / 72 Read more »

Junior lawyers are getting fast offers and big bonuses in a hot marketBig Law firms are in an 'unprecedented' scramble for associates, paying up to six-figure signing bonuses to get young lawyers in the door Don't waste your time on monthly salary when you can earn up to $10,000 in 72hours of trading process Ask me how 👇👇👇👇 Why was Trump banned?
Source: BusinessInsider - 🏆 729. / 51 Read more »

These stocks let you tap into the hot housing marketMany home builders' valuations are still low, while their implied upside potential is in the double digits.
Source: MarketWatch - 🏆 3. / 97 Read more »