As retail investors pump less money into blank-check companies, returns on those stocks are badly underperforming versus the S&P 500, Reuters reports.
The news organization found that over 100 SPACs that announced mergers this year on average have gained under 2 percent from the price they traded at when they first listed on the stock exchange.
Most of those SPACs began trading on the stock market last year, and the group’s median performance has trailed the S&P 500 by 15 percentage points, according to the Reuters analysis of data from Refinitiv and research firm SPAC Research. Read more.
