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The other big reason they’ve become so popular lately is that they allow private companies to go public without an IPO (thus avoiding a lot of the disclosures t
by highwaylights 4y ago
The other big reason they’ve become so popular lately is that they allow private companies to go public without an IPO (thus avoiding a lot of the disclosures that would otherwise be required).
Public SPAC created with no business -> raises funding from investors (or marks) -> “acquires” private company -> SPAC renames to private company’s name -> private company is now public without IPO
- rodgerd 4y agoYeah, this is the key context: people have argued that they're essentially a way of capturing all the value of a "going public" event to a smaller audience than a traditional IPO.
- fijiaarone 4y agoYes, the special purpose is to avoid disclosure or regulation. It’s pseudo-legalized fraud.