Large clearing firm to go public via spac

Discussion in 'Wall St. News' started by zdreg, Feb 22, 2021.

  1. zdreg

    zdreg

  2. This whole SPAC thing is rather interesting.

    Investors put their money into something they know nothing about... no analysis, no evaluation... they just trust that the operators will "do something good and make the investors money". (Kind of like gambling, no?)

    Saw a story about one SPAC buying an "electric truck" maker for $2Billion.

    Sounds like part of the "big top/rampant greed" psychology to me.

    :)
     

  3. What in the fuck makes you think the SPACs dont evaluate or analyze them? Ignorant statement.
     
    TrailerParkTed likes this.
  4. Regular businesses take the money that you invest in them and make decisions you have no idea about just as much as you in a SPAC
     
  5. Not "just as much". At least the "regular businesses" are not "blank checks".

    There is some data that shows which SPACs appear to be "making money/enhancing value" vs. those "losing a bundle so far" on what they invested in.

    There is an additional layer of risk in the "I don't care where you invest my money, just make sure that I'm a winner for trusting you", mentality.
     
    Last edited: Feb 22, 2021
  6. zdreg

    zdreg

    Investing in a spac is similar to investing Goldman Sachs or the Carlyle group. It is like getting into an IPO without having to kiss a broker's ass for an allocation.
     
  7. 2rosy

    2rosy

    i thought spacs were modern day shelf companies. They are already public and others can use them to sell there company without the ipo.
     
  8. zdreg

    zdreg

    You are right in the sense no prospectus is issued.