US SEC targets SPACs with draft rule on disclosures, earnings projections

US SEC targets SPACs with draft rule on disclosures, earnings projections

FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst

 Wall Street’s watchdog on Wednesday unveiled a draft new rule to enhance blank-check company investor disclosures and to strip them of a legal protection critics argue has allowed the shell companies to issue overly optimistic earnings projections.

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