Reverse Merger Rules Are In Works, SEC Chief Says

Law360, New York (June 21, 2011, 2:09 PM EDT) -- Having warned the public about fraud risks posed by reverse mergers, the U.S. Securities and Exchange Commission is considering how to regulate them without stifling the business of exchanges like Nasdaq OMX Group Inc., the agency's chair said Tuesday.

SEC Chairwoman Mary Schapiro told reporters at a networking event for executives in Washington hosted by the Wall Street Journal that the regulator was weighing a variety of ideas but that none was ready for public scrutiny as of yet.

The dangers of such deals, in which...
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