The US Securities and Exchange Commission has released a statement warning investors about celebrity-endorsed special purpose acquisition companies (SPACs). In short: just because they’re famous doesn’t mean your money is safe.
SEC Warns on Celebrity SPACs
Posted on 03/10/2021
The SEC released an investor alert on March 10, 2021, “The SEC’s Office of Investor Education and Advocacy (OIEA) cautions investors not to make investment decisions related to SPACs based solely on celebrity involvement.
Celebrities, from movie stars to professional athletes, can be found on TV, radio, and social media endorsing a wide variety of products and services. Sometimes they are even involved in investment opportunities such as special purpose acquisition companies, or SPACs, as sponsors or investors. Those celebrities may even be well-known professional investors.
However, celebrity involvement in a SPAC does not mean that the investment in a particular SPAC or SPACs generally is appropriate for all investors. Celebrities, like anyone else, can be lured into participating in a risky investment or may be better able to sustain the risk of loss. It is never a good idea to invest in a SPAC just because someone fa
SEC gov | Celebrity Involvement with SPACs – Investor Alert sec.gov - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from sec.gov Daily Mail and Mail on Sunday newspapers.