Churchill Capital IV Stock Is Being Pushed Down by Short-Sellers
Following a massive boom over the past year, special purpose acquisition companies (SPACs) have seemingly fallen out of favor since February as investors question some of the lofty valuations that private companies have been fetching in definitive agreements. The Securities and Exchange Commission (SEC) has started to scrutinize SPACs more closely, fearing that average investors could end up getting harmed from the exuberance.
The securities regulator recently proposed a change that would impact how warrants are accounted for, which could potentially make reported earnings more volatile. Short-sellers have also been targeting some SPACs to capitalize on the SPAC pullback, amplifying the selling pressure.
Here's some evidence that short-sellers are pushing down Churchill Capital IV (NYSE: CCIV), a high-profile SPAC that's merging with Lucid Motors.
Source Fool.com
