Booming SPAC market draws SEC scrutiny
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The vehicles are touted for democratizing markets by allowing retail investors access to high-growth companies. But the SEC said they come with distinct risks.
As the use of special purpose acquisition companies has soared — giving ordinary investors a new way to get in on the ground floor of companies that will go public — the Securities and Exchange Commission is scrutinizing the potential dangers the new vehicle could pose to those investors.
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