SPACs have a price floor of $10 pre-merger. This is the NAV — Net Asset Value. This doesn't necessarily mean SPACs cannot go below $10 before a merger. It just

SPACs have a price floor of $10 pre-merger. This is the NAV — Net Asset Value. This doesn't necessarily mean SPACs cannot go below $10 before a merger. It just means that you as a shareholder have the ability to ask for your money back at $10/share regardless of the stock's current price. Surely you can see why this can make SPACs an attractive place to "park" one's money. The potential upside is pretty large, whereas risks are relatively low as long as you don't continue holding post-merger (where the price can indeed go down to $0 and you are no longer protected by the NAV floor).