Investing in SPACs in 2021. What you need to know
This is a follow-up article on one of the hottest investment assets in 2020 that some readers might not be aware of.
I have previously given NAOF readers a brief overview of what SPACs are in this article: How to invest in SPACs like a Venture Capitalist
In this article, I will follow up on providing more details of Investing in SPACs in this All-In-One Guide to SPACs.
What are SPACs?
To put it simply, SPACs (Special Purpose Acquisition Companies) are shell companies (companies with no operating businesses) that are listed, whose purpose is to identify and purchase a private company and allow that private company to be “listed” in this process. This is also referred to as a “reverse merger”.
SPACs are sometimes referred to as blank check companies. These companies have been around for decades as a marginal part of the...