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Tag: SPAC
SPAC ATTACK: What Happens When Hot IPOs and Financings Hit the Market in Tech and Gold
Guest Post by Marin Katusa
Initial Public Offerings (IPOs) are riding high right now.
You might’ve heard about the Snowflake IPO making headlines.
It’s a company with a special type of deal structure that most investors might not have heard of before.
Leading the charge and fury in the IPO markets are SPACs, (Special Purpose Acquisition Companies).
SPACs start as a shell company and sell shares to investors. It doesn’t have any operations or business of its own. The purpose is to acquire one that does.
It’s like a backdoor route for large sums of money (think $100 million, or more) to get into the stock market.