The U.S. Securities and Exchange Commission (SEC) cautioned investors about buying shares of so-called special purpose acquisition companies only because they are backed by celebrities, including movie stars and athletes. The SEC said a celebrity endorsement of a SPAC does not necessarily make it a safe bet for investors. Celebrities, like others, can be enticed into a risky investment, but they may be better able to sustain the risk of losses, the securities regulator added.
"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.