SPAC

SPAC, also called "blank check companies" or "shell companies," refers to a "special purpose acquisition company." It is a company formed solely to raise capital through an IPO in order to acquire an existing company — in other words, a "nominal" company with no commercial operations.

The investment period can also be as long as three years, so please note that your investment may be tied up for three years. In addition, you should also be careful about buying above the offering price, because if you buy above the offering price and the merger falls through, it is difficult to guarantee your principal.

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Topics: stock
Up: SPC
Category: Wiki/Economy