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From my understanding may also be taking advantage of the money the government's currently printing - at the externalized cost of general society, an additional
by loceng 5y ago
From my understanding may also be taking advantage of the money the government's currently printing - at the externalized cost of general society, an additional wealth transfer? I haven't looked read too much into SPACs yet, though they certainly did start to pop out of nowhere and in huge sums as "special purpose vehicles;" I'd sure love to raise a quick $1 billion SPAC though to fund my endless projects.
- acjohnson55 5y agoThat's not how SPACs work. You can only use the funding raised as basically a dowry for a merger with a private company. It's low risk to investors because they simply get their money back if 2 years pass without a merger, and the people who run the SPAC lose everything they spent on getting their SPAC to the stock market. Right now, the market is saturated with SPACs, but there are only so many private companies looking to go public.