{"id":20722,"date":"2021-10-19T11:16:13","date_gmt":"2021-10-19T16:16:13","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=20722"},"modified":"2022-09-27T20:21:14","modified_gmt":"2022-09-28T01:21:14","slug":"finra-probes-broker-dealers-activities-related-to-spacs","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/","title":{"rendered":"FINRA Probes Broker-Dealers\u2019 Activities Related to SPACs"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">Popular With Retail Investors, Shell Companies That Raise Capital Through Own IPOs Can Be Risky <\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Financial Industry Regulatory Authority (FINRA) has started a thorough examination of the activities of brokerage firms in relation to <\/span><a href=\"https:\/\/www.investorlawyers.com\/special-purpose-acquisition-company.html\"><span style=\"font-weight: 400;\">special purpose acquisition companies<\/span><\/a><span style=\"font-weight: 400;\"> (SPACs). These shell companies raise funds through their own IPOs and have up to two years to select and acquire a private company that will go public via merger. They are popular among retail investors seeking to make money from private companies whose shares they otherwise wouldn\u2019t be able to buy because they don\u2019t satisfy certain wealth or income thresholds.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, SPACs have come under increasing scrutiny from FINRA in the wake of their growing popularity, because of the risks and potential harm they can pose for retail investors. Our <\/span><a href=\"https:\/\/www.investorlawyers.com\/special-purpose-acquisition-company.html\"><span style=\"font-weight: 400;\">skilled SPAC investment attorneys<\/span><\/a><span style=\"font-weight: 400;\"> at Shepherd Smith Edwards and Kantas (SSEK Law Firm at<\/span><a href=\"https:\/\/investorlawyers.com\"> <span style=\"font-weight: 400;\">investorlawyers.com<\/span><\/a><span style=\"font-weight: 400;\">) are investigating claims of losses by investors whose brokerage firm unsuitably recommended a special purpose acquisition vehicle or did not fully apprise them of the risks involved. Contact SSEK Law Firm at (800) 259-9010 today\u00a0<\/span><\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/\"  title=\"Continue Reading FINRA Probes Broker-Dealers\u2019 Activities Related to SPACs\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Popular With Retail Investors, Shell Companies That Raise Capital Through Own IPOs Can Be Risky \u00a0 The Financial Industry Regulatory Authority (FINRA) has started a thorough examination of the activities of brokerage firms in relation to special purpose acquisition companies (SPACs). These shell companies raise funds through their own IPOs and have up to two [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":19932,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4603],"tags":[4534,4605,4604],"class_list":["post-20722","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-spacs","tag-spacs","tag-special-purpose-acquisition-company","tag-stable-road-acquisition-company"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SPACs Have Come Under Increasing Scrutiny From FINRA<\/title>\n<meta name=\"description\" content=\"FINRA is investigating SPACs, as the risk to investors increases. This post explains what is going on with FINRA and SPACs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SPACs Have Come Under Increasing Scrutiny From FINRA\" \/>\n<meta name=\"twitter:description\" content=\"FINRA is investigating SPACs, as the risk to investors increases. This post explains what is going on with FINRA and SPACs.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-markus-winkler-2862155-1.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SPACs Have Come Under Increasing Scrutiny From FINRA","description":"FINRA is investigating SPACs, as the risk to investors increases. 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This post explains what is going on with FINRA and SPACs.","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-markus-winkler-2862155-1.jpg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"FINRA Probes Broker-Dealers\u2019 Activities Related to SPACs","datePublished":"2021-10-19T16:16:13+00:00","dateModified":"2022-09-28T01:21:14+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/"},"wordCount":528,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-markus-winkler-2862155-1.jpg","keywords":["SPACs","special purpose acquisition company","Stable Road Acquisition Company"],"articleSection":["SPACs"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/","url":"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/","name":"SPACs Have Come Under Increasing Scrutiny From FINRA","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/#primaryimage"},"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-probes-broker-dealers-activities-related-to-spacs\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-markus-winkler-2862155-1.jpg","datePublished":"2021-10-19T16:16:13+00:00","dateModified":"2022-09-28T01:21:14+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"FINRA is investigating SPACs, as the risk to investors increases. 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