4 ms·
Best performing SPAC of the year if investors are getting all their money back.
by gregwebs 4y ago
Best performing SPAC of the year if investors are getting all their money back.
- abduhl 4y agoAre they? Most likely bought in at an overhyped valuation of over $20 and are now only receiving $20 back.
- SkyMarshal 4y agoHow would they have lost money, other than management fees, if none of it was invested?
- abakker 4y agoOpportunity cost - you locked up your money and it lost value due to inflation instead of being put into something that kept pace with inflation. Obviously, this is counterfactual, but that is the premise.
- giantg2 4y agoThe flip side is that statistically one would have likely put it in a security that declined over the past year.
- missedthecue 4y agoYou bought shares on the secondary market above the listing price. You are only receiving money at the listing price. i.e.: 1. shares listed at $20, I buy one, paying Ackman $20 2. I sell it to you for $30, you pay me that money 3. Ackman returns $20 to you It also works the other way around if you bought it from me below $20. You'd make a profit.
- enlyth 4y agoStill not as terrible as some SPACs, the all time high was around $30 for PSTH, so the worst haircut you could get is to be 33% down if you had bought at the very exact top.
- giantg2 4y agoThey should get the $20 back, and rights to buy into the next opportunity at a fixed price. I'm pretty excited about that.