Moves to ensure London’s listing rules are fit for the 21
st century cannot come too soon.
A review released alongside Rishi Sunak’s Budget this week suggests the UK aims to become Europe’s leading destination for special purpose acquisition vehicles (Spacs). The move could help reverse the London Stock Exchange’s dwindling share of global floats, but their history in the US suggests investors need to take care.
Spacs essentially offer a “backwards IPO” and easy route to market for a private company. They are cash shells, known in the US as “blank cheque” companies, with no commercial operations. They raise capital through an initial public offering for the purpose of acquiring an existing company. As the companies have no operations, the disclosure requirements and listing documentation are much easier and less costly.
Stocks End Wild Session Little Changed
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Tech Stocks Pare Losses After Morning Swoon
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By Joe Wallace and Michael Wursthorn Stocks rebounded Tuesday after Federal Reserve Chairman Jerome Powell signaled that an interest-rate increase from the central bank isn t imminent, easing some concern over rising bond yields. Major stock indexes turned positive in late-afternoon trading after Mr. Powell told lawmakers that inflation remains soft, tamping down recent fears of a policy shift by the central bank following a spike in bond yields. Earlier in the session, the tech-heavy Nasdaq Composite Index dropped as much as 4% and investor favorites including Tesla and Moderna logged double-digit losses. Portfolio managers said the moves marked a rotation out of the high-growth favorites of the past year and into more economically sensitive stocks such as banks and manufacturers.
Mark Yusko
Morgan Creek Capital Management launched the third ETF to capitalize on the SPAC boom.
Founder Mark Yusko breaks down the strategy and how it could be beneficial in a bear market.
Yusko, a crypto bull, shares 3 other sectors to watch amid the SPAC frenzy.
Special Purpose Acquisition Companies have been among the most talked-about investing trends of the past year. After all SPAC launches in 2020 more than tripled from 2019, according to SPAC Insider.
Everyone seems to have one, from Colin Kaepernick to Bill Ackman to Billy Beane. Now, they are even the subject of a rap song called SPAC Dream , which has over 98,000 YouTube views.