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US SPAC stock issuances may call for IPO-type investor safeguards, SEC's Coates says

( April 8, 2021, 19:51 GMT | Official Statement) -- MLex Summary: US special purpose acquisition companies that issue stock to public investors with assurances that the firms face less liability exposure than those in initial public offerings may be making "potentially seriously misleading" claims, said John Coates, the Securities and Exchange Commission's acting corporation-finance chief. If regulators don't give these issuances the same investor protections that IPOs are afforded, "our attention may be focused in the wrong place," he said. SPACs are exchange-listed shell companies whose shares are owned by hedge funds and other institutions. They acquire private companies whose stock is then issued to the public for the first time, at which point many hedge funds immediately sell their stakes.Statement follows below:...

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