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SEC warns against investing in SPACs based solely on celebrity backing

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Writer Vera 작성일25-01-28 00:12 View7 Reply0

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"It is never a good idea to invest in a SPAC just because someone famous sponsors or invests in it or says it is a good investment," the SEC said. website The recent SPAC frenzy has attracted the attention of a number of mainstream celebrity figures such as rap star Jay-Z, tennis legend Serena Williams and National Basketball Association Hall of Famer Shaquille O'Neal who have either sponsored their own blank-check firms or joined the boards of other SPACs.

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Accelerated coronavirus vaccine rollouts and a monster fiscal stimulus on the horizon have raised bets on higher inflation, triggering a spike in Treasury yields that pushed the Nasdaq down as much as 12% from its Feb. economy reopens and sold the big tech names that have fueled the rally since last March. A rotation into sectors such as energy and financials continued, both in small- and large-cap stocks, as investors bet on consumer spending when the U.S.

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As the social media investors pushed shares of the company up, Wall Street has had to recalibrate its bets, pushing shares beyond their all-time highs. The moves mark the spectacle of what some investors call a war between Wall Street and social media traders.

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