Over the past months, SPAC or special purpose acquisition company stocks have managed to come into considerable focus among investors and one of those is the Social Capital Hedosophia Holdings V (NYSE:IPOE) stock.
The company is close to completing a merger with SoFi but as the day approaches, the stock has been in the middle of a continued downward spiral. Experts believe that due to the delay in the merger, there may have been a certain degree of short selling in the Social Capital Hedosophia stock.
The delay in the merger was caused by the guidance updated by the United States Securities and Exchange Commission in relation to the accounting of the SPAC warrants. That being said, there has been no suggestion that the much-anticipated merger is going to be unsuccessful.
Hence, it appears that the fall in the Social Capital Hedosophia is due to a bit of market panic and short selling at this point.
Finance and Entertainment Reporter
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