• vanontom@lemmy.world
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    8 months ago

    I don’t really understand this, either. Other than these new SPACs being the cutting edge of fraud or some kind of white-collar crime. Here’s some interesting info (and comparison with Reddit IPO).

    SPACs were supposed to be a quick and easy way for a company like Trump Media & Technology Group to go public, but it hasn’t worked out that way.

    Instead, they’ve developed a reputation as a kind of back-door IPO for companies that probably couldn’t withstand the scrutiny involved with a conventional listing.

    Many of the highest-profile SPACs, including Nikola, Virgin Galactic, and BuzzFeed, are now unloved penny stocks.