Alerts

New NASDAQ Rule Allows SPAC Listings

September 4, 2008

The Securities and Exchange Commission has approved a rule allowing special purpose acquisition companies, or SPACs, to list on NASDAQ. SPACs, also known as blank check companies, are companies without existing business operations that are formed for the purpose of consummating an acquisition of a to-be-identified business. Previously, NASDAQ did not list securities of an issuer without a specific business plan or that indicated that its plan was to engage in a merger or acquisition with an unidentified company.