BMW-Batteriebeteiligung Solid Power will mit Finanzvehikel an die US-Börse finanznachrichten.de - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from finanznachrichten.de Daily Mail and Mail on Sunday newspapers.
Stock Takes: The hidden risks in Rocket Lab s SPAC listing
13 May, 2021 05:00 PM
9 minutes to read
The SPAC which is set to merge with Rocket Lab has already attracted thousands of Kiwi investors. Photo / File
The SPAC which is set to merge with Rocket Lab has already attracted thousands of Kiwi investors. Photo / File
Thousands of Kiwis have already invested in the special-purpose acquisition company (SPAC) that is likely to be merged into Rocket Lab despite it not being a done deal yet. Leighton Roberts, co-founder and co-CEO of Sharesies said 3000 of its users had already invested in the Nasdaq-listed Cayman Islands-incorporated Vector Acquisition and it is in the top 100 most popular investments on its platform out of a possible 5000 options.
To embed, copy and paste the code into your website or blog:
The FCA has today published a consultation paper proposing changes to the Listing Rules applicable to Special Purpose Acquisition Vehicles (SPACs). A link to the consultation paper can be found here.
The FCA s main proposal is to remove the existing presumption in the Listing Rules that the listing of a SPAC will be suspended when it identifies a potential acquisition target.
The removal of the suspension presumption would be contingent on a SPAC having certain features built into its structure and providing certain disclosures to the market.
In order to avoid a suspension of its listing, a SPAC would need to satisfy the following criteria:
To embed, copy and paste the code into your website or blog:
SEC has been doling out investor bulletins, disclosure guidance, alerts, and staff statements relating to Special Purpose Acquisition Vehicles (SPAC) for a while now. On March 31, 2021, SEC released not one but two separate statements on select issues pertaining to SPACs, one from the Division of Corporation Finance and another from the Office of the Chief Accountant.
The first announcement focused on highlighting certain limitations associated with completing a business combination with a SPAC and emphasizing the immediate set of compliance and disclosure requirements that come with being a public company, as a result of SEC regulations and securities exchange rules, like those of NASDAQ or NYSE. The tone of the announcement almost seemed to draw attention to, if not warn, private companies who may be too hasty to jump on the SPAC bandwagon without considering the various resources and extensive planning it takes to
Beginners: Don’t Wait for a Selloff. Make This Smart Investing Move Instead Image source: Getty Images
The appetite for speculation has really picked up over the past several months, making it tough on beginners looking to enter the markets. There’s a speculative frenzy in Bitcoin, meme stocks, SPACs (Special Purpose Acquisition Vehicles), EV stocks, IPOs, NFTs (Non-Fungible Tokens), and all the sort. Indeed, the environment rhymes with that of the late 1990s, when rampant speculation became a hobby through the eyes of many inexperienced newcomers lured by the hopes of striking it rich over the near term.
Although this market seems like it’s going to fall off another cliff, as it did 22 years ago, I’d argue that although this market rhymes with the late 1990s, we’re not due for a repeat.