Financial Glossary

Understanding financial terms and concepts

SPAC Terms

SPAC

Special Purpose Acquisition Company - a "blank check" company that raises capital through an IPO to acquire or merge with an existing company.

De-SPAC

The process of a SPAC merging with a target company, resulting in the target company becoming publicly traded.

PIPE

Private Investment in Public Equity - private investment in public companies, often used in SPAC transactions.

Trust Account

An escrow account where SPAC IPO proceeds are held until a merger or acquisition is completed.

OTC Market Terms

OTCQX

The highest tier of the OTC Markets, requiring the most stringent reporting and compliance standards.

OTCQB

The middle tier of the OTC Markets, requiring current financial reporting and other basic standards.

Pink Sheets

The lowest tier of the OTC Markets with minimal reporting requirements.

Market Maker

A firm that provides liquidity by buying and selling securities on behalf of clients.

Compliance Terms

SEC

Securities and Exchange Commission - the federal agency responsible for regulating securities markets.

FINRA

Financial Industry Regulatory Authority - a self-regulatory organization that oversees broker-dealers.

Form 211

A form required for market makers to quote securities on the OTC Markets.

Rule 144

SEC rule governing the sale of restricted and control securities.