SPACs began to cool off, and cool off quickly, after the SEC expressed a range of concerns about the investment vehicle. The number of SPAC IPOs fell 79% from the first quarter to the second. The value of those SPAC IPOs dropped by over $84 billion, a decrease of more than 86%.
What did the SEC do? In addition to statements regarding the accounting of SPAC warrants, a feature beloved by early investors, the SEC also issued a warning to retail investors that addressed celebrity endorsements and optimistic projections, among other things. Hype from celebrities has led ordinary investors ...
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