Mikaila Adams
Editor, The Financial Update

At a recent informal sit down in New York, AMEX Head of Equities Rob Wotczak spoke about the resurgence of the Special Purpose Acquisition Corp. (SPAC). While popular in the '90s, the investment vehicle fell out of vogue quickly due to some unscrupulous issuers. Wotczak suggested the corporations weren't appropriately regulated because they weren't listed on a national exchange.

Since that time, SPACs have made a comeback. A few years back, a series of potential issuers and investment bankers brought back the idea, but with a caveat of conditions designed to safeguard the investor. AMEX worked with state attorney generals and the SEC to become the first national exchange to go through the due diligence process to put checks and balances in place.

To protect investors, 80% of shareholders have to vote to approve a deal or transaction. If the founds deal isn't appropriate to shareholders they have right to vote it down and get their money back. Additionally, the money held must be rolled into an escrow account holding interest while the acquisition target is sought. Most SPACs issued today require 90% - 100% to be held in escrow.