Like a traditional SPAC, a SPARC is a shell company that is seeking to identify and combine with a private company, with the post-combination entity being a capitalized public company. Unlike a traditional SPAC, a SPARC does not raise any public capital at its onset.
Read MoreDopamine-Driven Trading On Robinhood Raises Suitability Concerns For The SEC
Hersh Shefrin, the Mario L. Belotti Professor of Finance at the Leavey School of Business, Santa Clara University, recently wrote an article about the SEC’s attention on Robinhood’s practices and the concept of suitability in using the Robinhood platform. See the full article here.
Read MoreWhy More SPACs Could Lead to More Litigation (and How to Prepare)
Market turmoil due to COVID-19 has halted many IPO plans, but IPOs by SPACs (special acquisition companies) are actually picking up in pace. Indeed, according to my sources at the Nasdaq, 40% of proceeds raised in IPOs to date this year have been from SPACs. And, as night follows day, more SPAC IPOs will lead to more SPAC litigation.
https://woodruffsawyer.com/do-notebook/more-spacs-more-litigation/
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