4 ms·
On top of this, SPACs usually have private PIPE investors who get shares at the "IPO" price, typically 10 dollars, while people who buy the public SPAC shares t
by tachyonbeam 6y ago
On top of this, SPACs usually have private PIPE investors who get shares at the "IPO" price, typically 10 dollars, while people who buy the public SPAC shares typically have to pay twice that, which feels super scammy.
https://www.investopedia.com/terms/p/pipe.asp https://www.investopedia.com/terms/p/pipe.asp
- lupire 6y agoWhy? Earlier investors always get better prices before opening to the public, in exchange for helping the company go public.
- what_ever 6y agoPipe != Early https://www.investopedia.com/terms/p/pipe-deal.asp https://www.investopedia.com/terms/p/pipe-deal.asp
- jVinc 6y agoThat sounds a bit like claiming that it's scamy a company founder gets a higher salary than future employees. Of cause the company is allowed to raise money anyway it sees fit, including providing discount for individual investors for any given reason. If you don't like how they are carrying out their business you can just not invest. Which you might be leaning towards, which is why if you where a potential big investor they might offer you a discount to get you onboard as well.