Case Study: SPAC- Special Purpose Adquisition CompanyGabriela Chavarri
What is a SPAC and why do people keep talking about it?
These purely instrumental companies, also known as “blank checks companies”, are essentially created for the sole purpose of raising money to later buy or merge with a target company.
SPACs have been around for decades but the stock market rally after the outbreak of the pandemic, together with the low profitability offered by fixed-income investments and the dazzling of the market with new options to earn money is the perfect breeding ground for SPACs to grow exponentially. So far in 2021 more money has been raised than in 2020.