SPACs have single-handedly revived the market for initial public offerings, taking small companies public by the dozens. So far this year, there have been roughly twice as many listings of these blank-check companies as traditional offerings, the New York Times DealBook reports.
And since these cash shells often target emerging tech companies, that market has returned to its glory years.
Why, then, are regulators trying to kill it? The assault has been quick and focused. First came the attack on safe-harbor protections, then the regulator issued a statement on new accounting for warrants.
The regulatory scrutiny of SPACs has been triggered by hand-wringing over whether they are too risky for retail investors, a question recently posed by SEC Chairman Gary Gensler. Read more.
