The SEC issued a warning against SPACs backed by celebrities, urging investors to think before jumping in.
“Celebrity involvement in a SPAC does not mean that the investment in a particular SPAC or SPACs generally is appropriate for all investors,” the SEC said in an investor alert posted on its website.
“Celebrities, like anyone else, can be lured into participating in a risky investment or may be better able to sustain the risk of loss,” the alert states. “It is never a good idea to invest in a SPAC just because someone famous sponsors or invests in it or says it is a good investment.” Read more.
