STOCK GOODIES PLAYS OF THE WEEK

[BORN AGAIN]

A reverse merger or a reverse takeover, the joining together of a public company and a private company, was once done to allow the private company to become a publicly traded corporation quickly, without the need to provide immediate financial information (the newly merged company was allowed a greater period of time to do so. This was done to expedite the requirements needed for the merged company to start trading in the stock market, since the shell company or corporation had already gone through the SEC review process.

However, to provide better information to the investing public, new SEC (Securities and Exchange Commission) rules now require the company wishing to do the reverse merger or reverse takeover to provide much of the documentation that would be required for a registration statement.