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by sitkack 1979 days ago
Could someone ELI 15?
1 comments

Sure. What part?

SPACs are basically stocks in search of a company. People put their resources together, and then eventually the guy who runs the SPAC finds a great company to invest in, and uses the SPAC to buy it.

Nowadays, some companies are using SPACs to go public instead of using an IPO. In some ways it's like the work-from-home version of an IPO; the investors are already subscribed, and the stock is already public.

So far, we have seen small companies get acquired by SPACs. However, there are many private and established companies out there. The article asks whether any of those much larger companies are going to become SPAC targets.

Thanks that really helped. Seems less shady than IPO via a reverse merger with an OTC stock.