The Debate Around SPACs and Investor Protection/ explaining spacs

The existence of SPACs raises concerns about raising public funds for non-existent companies. Retail investors want access to investment opportunities but also need protection. The challenge lies in finding a balance between empowering and safeguarding investors. SPACs have been around for a while and function as a form of investment banking, allowing companies to go public when traditional investment banks won't take them. With a small investment, individuals can acquire a significant percentage of a company and potentially make substantial profits by leveraging their social media presence. This raises questions about the fairness and regulations surrounding SPACs.