Trump SPAC’s zealous investors are both a blessing and a curse

Cordell Eminent Scholar Jay Ritter comments on the planned merger between Miami-based Digital World and Donald Trump’s media venture, and how investor confusion on SPAC rules has challenged the deal. 

“There’s no rational reason why any shareholder should vote against an extension or not vote,” said Ritter. He finds the whole episode odd because, he notes, these votes are usually procedural. “So it must be the case of people not paying attention or getting confused if they do go to vote. A lot of people have bought it for ideological reasons, and aren’t necessarily, by retail standards, sophisticated investors.”

Read more from Ritter in this story from Bloomberg.