U.S. SEC Opens Inquiry Into SPACs: Reuters

The SEC is currently requesting voluntary information from Wall Street banks regarding internal controls and pricing, focusing on due diligence and potential insider trading. This is not a formal investigation yet. The SEC is particularly interested in the gap between when a SPAC lists and when it acquires a company, as insider trading could occur if information about acquisition targets is leaked.

What is the current status of the SEC's request for information from Wall Street banks?

• It is a public announcement.

• It is a mandatory investigation.

• It is a voluntary request.

• It is a formal investigation.

Which two areas is the SEC focusing on in relation to SPACs?

• Market manipulation and fraud

• Due diligence and insider trading

• Tax evasion and money laundering

• Corporate governance and ethics

Why might insider trading be a concern during the SPAC process?

• Because SPACs are always public

• Because SPACs are not regulated

• Due to the lack of financial audits

• Due to the gap between listing and acquisition

What is typically prohibited during the gap between a SPAC listing and acquisition?

• Announcing new partnerships

• Issuing new shares

• Discussing financial reports

• Discussing specific acquisition targets

What could be considered illegal by the SEC during the SPAC process?

• Issuing press releases

• Holding shareholder meetings

• Learning about and acting on acquisition targets

• Changing board members