Oct. 31, 2022
October 31, 2022 Shell companies and SPACs are being used by large institutions to hide their wealth and investments in crafty methods from other market participants. Instead of looking through one company's reports, now market participants wanting an understanding of the market have to sift through thousands of additional companies which are all owned by one group. This allows large firms to hold an insider's equivalent of shares dispersed through various unreported methods. This allows risky SWAPS to be transferred between a single company to hide true exposure. It also allows profits to be exported to tax havens. Large firms can invest into these at pennies on the dollar, push the stock and sell into the hype for a quick buck. With these issues presented being just the tip of the iceberg, there is little room for shell companies or SPACs and any of them should be reported to the SEC and public databases promptly.