The SEC does have rules pertaining to privately traded investment. They are normally more lax than for publicly traded companies, and therefor normally require

The SEC does have rules pertaining to privately traded investment. They are normally more lax than for publicly traded companies, and therefor normally require the investors be accredited. The investor is expected to preform more due diligence. https://www.investopedia.com/terms/a/accreditedinvestor.asp https://www.investopedia.com/terms/a/accreditedinvestor.asp If you are confused about how SPACs work, and the OP article didn't help, the investopedia is good https://www.investopedia.com/terms/s/spac.asp https://www.investopedia.com/terms/s/spac.asp