Remove Accountant Remove Corporate Finance Remove Trading Securities
article thumbnail

SPAC Trend Gives Rise to Securities Enforcement and Litigation Risks

Cooley M&A

In light of the trend, the US Securities Exchange Commission’s Division of Corporation Finance recently issued SPAC disclosure guidance. The SPAC then sells shares of the SPAC company to the public in what is known as a SPAC IPO, and proceeds equal to the amount raised in the SPAC IPO are placed into a trust account.