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IPOs via SPAC are booming too. I think this is even bigger issue.
by antattack 6y ago
IPOs via SPAC are booming too. I think this is even bigger issue.
- abhinav22 6y agoOne of the biggest scams I can see currently - hide the terms behind financial instruments, but take a 20 to 25% fee for making an investment!! When the usual fees are 1.5% plus a performance fee I really don’t understand why the SEC allows them to continue without proper disclosures on what they really are....
- chris11 6y agoYeah, I really don't get SPACs. From a company's perspective it just seems like a faster way to go public with less regulation. SPACs seem decent for the initial investors. But I don't see how investing in a public SPAC is better than investing in an IPO. There's a lot less disclosure, and you don't really get any special benefits.
- abhinav22 6y agoI agree. In fact it’s much worse because of the fee structure and lack of disclosure / transparency. Surprised the SEC haven’t jumped in on it as it’s blatantly aimed at avoiding the IPO regulatory process