Reverse merger

A reverse merger is when a private company buys a public company (one whose stock trades on an exchange) and takes over its shell—basically using the public company's existing stock ticker to go public without the usual IPO process. You'll see this in SEC filings when companies want to raise money and reach public investors quickly, though it's often riskier than a traditional IPO because there's less regulatory scrutiny. For example, if TechStartup Inc. (private) purchased PublicShell Corp (a dormant public company), TechStartup could then trade publicly under PublicShell's ticker. It's a faster shortcut to going public, but investors should dig into the details carefully since reverse mergers sometimes involve less-established companies.