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.
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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. good 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...
مصدر: Forbes - 🏆 394. / 53 اقرأ أكثر »
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.
مصدر: CNBC - 🏆 12. / 72 اقرأ أكثر »
Americans getting priced out of red-hot housing market: 'It's the Wild West'With home prices rising at the fastest pace in 15 years, buyers nationwide are getting priced out. The result, economists warn, is widening inequalities in the housing market. Maybe Biden can include free homes in the new infrastructure bill. Why not? Because 'investors' are buying up single family homes instead of actual families. Welcome to the new housing bubble. It's like our government has forgotten what 2007/2008 were like. DNC needs to monitor this closely!
مصدر: ABC - 🏆 471. / 51 اقرأ أكثر »
A 'tidal wave' of Chinese companies rush into the red-hot IPO market in the U.S.In China's start-up world, the rich are getting richer as investors and companies clamor for a piece of the hot U.S. IPO market — before it loses steam. Why are they still allowed when SEC wants to delist them? Yup
مصدر: CNBC - 🏆 12. / 72 اقرأ أكثر »