“What’s a SPAC? Everything to Know About The Wall Street Trend”
NerdWallet | June 30, 2021
SPACs have grown exponentially, catching the attention of regulators and leading to the intervention of the Securities and Exchange Commission (SEC). SPACs have raised over USD106bn in initial public offerings so far in 2021 – more than that raised from 2003 to 2019. Amid this boom, the SEC announced new accounting guidelines for SPACs on 12 April.
In an article in NerdWallet, our expert highlights the fact that investors need to be more alert and consider their own financial situations and risk appetites before investing in SPACs.
Extract from the article: “You do need to exercise proper financial diligence, which is to an extent limited in a SPAC because you don’t have commercial operations…Exercising a bit more caution, just like you would do in an IPO, would definitely make sense”