What is a SPAC?

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Are SPACs a Smart Investment Option for 2022?

SPACS or special acquisition companies are becoming a popular way to raise money. It is a unique and innovative concept that, on the surface, doesn’t seem to make sense.

How Do They Work?

SPAC investors are betting that management can identify target companies with stock prices undervalued by the market and buy them at a discount within two years.

Pros of Investing in SPACs

1) They are easy to access for many investors.  2) There are not any lockup periods where you can’t sell your shares of SPAC stocks.

Cons of Investing in SPACs

1) They are highly speculative investments. 2) The management teams of these companies tend to be former CEOs.

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