SEC Approves Nasdaq SPAC Proposal

The U.S. Securities and Exchange Commission has approved a proposal by exchange operator Nasdaq Inc. to allow companies to raise capital through direct listings. According to a story in Reuters news, the SEC said Nasdaq's proposed rule change was consistent with the regulator's rules and regulations and could be beneficial to investors as an alternative to a traditional initial public offering. The move is a big breakthrough for the exchange operator that has been pushing for an alternative for companies to raise money. The new IPO alternative could also potentially attract companies that are currently looking to go public via deals with special purpose acquisition companies (SPACs).