Tuesday, March 28News That Matters

Tag: disclosures

SEC is scrutinizing SPAC projections, seeks clearer disclosures

Saul Loeb | AFP | Getty ImagesThe SEC is eyeing potentially misleading earnings projections made by SPAC sponsors and is seeking clearer disclosures, with one official hinting Thursday that the agency may issue a future rule to rein them in.Special purpose acquisition companies, known as SPACs or blank-check funds, are a hot-ticket item on Wall Street.More from Personal Finance:There are snags in free COBRA health insuranceMarriage sometimes means paying more in taxesNew York is raising taxes for millionaires. Will others follow?The investments are like quasi-IPOs. A publicly traded shell company uses investor money to buy or merge with a private company, typically within two years. In so doing, the private company becomes publicly traded, offering an alternative to a traditional IPO.SPAC ...