Special Purpose Acquisition Company (SPAC) Explained - Stock Market Simplified

What is a special purpose acquisition company (SPAC)? A special purpose acquisition company (SPAC) is a company with no actual commercial operations and is formed strictly to raise capital via the initial public offering (IPO) process in order to acquire an existing company, usually one that is private. Special purpose acquisition companies are also known as "blank check companies."

Recently, they've dramatically increased in popularity, especially among retail investors. SPACs are attracting big-name underwriters and investors and raising record amounts of IPO money in 2019 and 2020.

Want to know more about how SPACs work? In this video, we cover what a SPAC is, why they exist, and how private companies leverage them in order to more easily become publicly traded on stock exchanges.


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Sources:

https://en.wikipedia.org/wiki/Special...
https://spacinsider.com/stats/

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DISCLAIMER: This and all of my videos are for entertainment purposes only. My statements are my opinions and should not be accepted as financial advice.

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