While SPACs can make some people a lot of money, far too often that money is coming straight out of the pockets of retail investors. Cutting through the hype to learn the actual facts on SPACs and their dismal track record is a critical step for investors and for policymakers seeking to address the unique risks these investments pose.

Special purpose acquisition companies have become increasingly trendy of late, commanding an increasing amount of attention. They are basically public blank check companies formed to identify and then merge with a private company to take it public while side-stepping the usual initial public offering process. However, despite the hype, they’re subject to weak regulation and fraught with risks for investors.

Our fact sheet lays out some of the key points that any investor, as well as the SEC, should be thinking about when it comes to SPACs.