Some say SPACs are a way to bet on the jockey as opposed to the horse, but it could just as easily be said that they’re a consequence of high investor interest in today’s horses. Here’s a way to attain their shares sans the typical IPO challenges, reports Real Clear Markets.
Despite this, there’s no alteration of traditional market realities. Newly public companies are risky investments for many reasons, but most notably because their newness means they’re a bet on a future that’s vague. Which means SPACs are risky. They are because they’re just another way for generally younger private companies to go public.
As opposed to clueless dupes in the process of being steamrolled by savvy SPAC owners, the more realistic truth is that the investors are the alphas in the relationship. And they know what they’re getting into. Read more.
