Don’t invest in SPACs just because of celebrity endorsements, SEC says
Today, the US Securities and Exchange Commission (SEC) has found the growing trend of celebrity-endorsed special purpose acquisition companies (SPACs) dangerous enough to warn investors in a new statement: just because a celebrity is participating in or endorsing a SPAC, doesn’t mean you should invest.
The terminology can be complicated, but the SEC’s advice is fairly simple. Like if any stranger recommended you invest in a business (in this case, one trying to merge with other companies to take them public), there are a lot of unknowns that should be accounted for. “Celebrities, like anyone else, can be lured into participating in a risky investment,” writes the SEC’s Office of Investor Education and Advocacy. Celebrities, many already…