In March 2008, shortly after the NASDAQ made a similar proposal, the New York Stock Exchange (“NYSE”) proposed a rule change that aims to allow the listing of special purpose acquisition companies (“SPACs”).  On May 6, 2008, the Securities and Exchange Commission (“SEC”) approved the NYSE’s proposed rule change, and the new rule is now in effect. 

SPACs, also known as blank-check companies, are companies without business operations that raise money through an initial public offering (“IPO”) to have their shares publicly traded for the sole purpose of seeking out one or more business combinations with operating businesses.  Their business plans are presented to potential investors in the IPO without identifying a specific business combination.  Once a SPAC locates an opportunity for a specific business combination, they present the opportunity to their shareholders for approval. 

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