What Is A SPAC?

SPAC's are trending and the latest buzz on Wall Street. SPACs, or blank check companies, are increasingly popular in the stock market. In fact, there have been over 160 SPAC IPOs in 2020, raising more than $62 billion. So what are SPACs, and what should you know before investing in them?

Check out this quick video to understand SPAC's in detail their benefits and drawbacks.

Key Takeaways

• SPAC stands for Special Acquisition Company

• Company formed for the sole purpose of acquiring another private company

• Investors can sell shares before or after an investment

• Alternative to Traditional Initial Public Offering or IPO

• Recent SPACS: DraftKings, Betterware, AdaptiveHealth

• SPACs have been around for decades

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