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Full-Text Articles in Securities Law
Reverse Mergers: A Legitimate Method For Companies To Go Public Or An Easy Way To Commit Fraud?, Kyla Houge
Reverse Mergers: A Legitimate Method For Companies To Go Public Or An Easy Way To Commit Fraud?, Kyla Houge
Journal of the National Association of Administrative Law Judiciary
This article explores reverse mergers, a method commonly used by legitimate businesses and fraudsters alike. Part II provides a historical framework of publicly traded companies by detailing how they first began and exploring how they have evolved. Part III details several reasons a company may decide to go public. Part IV discusses, in detail, three common methods companies use when going public, called initial public offerings, Rule 144 placements, and direct public offerings, and the pros and cons of each method. Part V explores the origin of reverse mergers by explaining what a reverse merger is and exploring how reverse …