SPACs are booming 'at the expense of retail investors', and regulators should take these 5 steps to fix the market, think tanks say

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SPACs are 'fueled by conflicts of interest and compensation to corporate insiders at the expense of retail investors,' a letter to regulators stated.

In February, two financial reform think tanks sent a letter to Congress detailing concerns over the SPAC boom.

In February, Americans for Financial Reform and the Consumer Federation of America sent a letter to the House Financial Services Committee detailing concerns over the boom among special purpose acquisition companies. SPACs have been around for decades, yet they have rocketed to prominence last year and in 2021, touted as a faster and cheaper alternative for companies to go public compared to the traditional IPO.

The organizations offer five recommendations for Congress and financial regulators"to better protect retail investors."Congress should look again at legislation that allowed the SEC to regulate blank-check firms, and the term should not be limited to companies that issue"penny stock" offerings.

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Weedmaps, who has long derived the majority of their revenue in the form of cash from drug dealers, going public via an SPAC tells you everything you need to know about SPAC’s

Mr_Drone

thanks for this news

Sounds reasonable in unreasonable times...

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