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Full-Text Articles in Business Organizations Law
Financial Innovation And Unforeseen Consequences: Spacs, Sec Lending, And Shorts, Christian A. Johnson
Financial Innovation And Unforeseen Consequences: Spacs, Sec Lending, And Shorts, Christian A. Johnson
University of Arkansas at Little Rock Law Review
Although publicly traded “special purpose acquisition companies” (SPAC) have been trading for decades, the effect of the unique shareholder rights found in SPAC shares should be fully studied and compared with the rights of publicly traded non-SPAC shares. Because of their differences, PAC shares will not necessarily behave in the same way as non-SPAC shares in certain situations. The short selling of SPAC shares offers a useful case study as well as lessons for regulators, investors, and short sellers about the unforeseen and unintended consequences of financial innovation in the other-wise understood corner of securities lending and short selling of …
Spac Regulation—Past, Present And Future, E. Ramey Layne, K. Stancell Haigwood
Spac Regulation—Past, Present And Future, E. Ramey Layne, K. Stancell Haigwood
University of Arkansas at Little Rock Law Review
No abstract provided.
Spac Attack, Justin Kuehn
Spac Attack, Justin Kuehn
University of Arkansas at Little Rock Law Review
No abstract provided.
Special Purpose Acquisition Companies (Spacs) And The Sec, Neal Newman, Lawrence J. Trautman
Special Purpose Acquisition Companies (Spacs) And The Sec, Neal Newman, Lawrence J. Trautman
Faculty Scholarship
Special Purpose Acquisition Companies (SPACs) are simply enterprises that raise money from the public with the intention of purchasing an existing business and becoming publicly traded in the securities markets. If the SPAC is successful in raising money and the acquisition takes place, the target company takes the SPAC’s place on a stock exchange in a transaction that resembles a public offering. Also known as “blank-check” or “reverse merger” companies, this process avoids many of the pitfalls of a traditional initial public offering.
During late 2020 and 2021 an unprecedented surge in the popularity and issuance of Special Purpose Acquisition …