• SPAC Investors Are Ignoring This Hidden Danger — and It Could Cost Them a Boatload of Money

    Investors have never been more excited about privately held companies coming to market. Many companies have gone public in recent months, and promising privately held businesses are increasingly foregoing the traditional IPO process in favor of merging with a special purpose acquisition company (SPAC).
    There have been many high-profile success stories among SPACs, and the IPO alternative does allow investors to obtain shares of privately held companies a lot earlier than would otherwise be possible. However, there’s a hidden danger that many SPAC investors aren’t aware of. As the popularity of SPACs grows, this trap could keep getting costlier for unwitting investors. 
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