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Contribution Details

Type Bachelor's Thesis
Scope Discipline-based scholarship
Title Special Purpose Acquisition Companies
Organization Unit
Authors
  • Sean Siegenthaler
Supervisors
  • Benjamin Wilding
Language
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Number of Pages 41
Date 2023
Abstract Text In 2021 more than half of U.S. IPOs were SPACs, and more than a third of the companies that went public had chosen a de-SPAC transaction over a traditional IPO. However, the hot Wall Street trend ended soon after its emergence. Investors burnt their fingers, and sponsors walked away with huge profits. The SEC intervened with restrictive regulatory scrutiny to protect the investors. However, increasing the liability, improving disclosure, and ultimately enhancing the SPAC’s structure will not eliminate the risk of SPACs as an investment vehicle.
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