What are the differences between an IPO and a SPAC?
An IPO, or Initial Public Offering, is when a company offers its shares to the public for the first time. A SPAC, or Special Purpose Acquisition Company, is a shell company that raises funds through an IPO to acquire a private company and take it public.
Which one is better for a company looking to go public?
It depends on the company's goals. An IPO can provide more capital and a more established process, while a SPAC can be faster and less complex.
What are the risks associated with SPACs?
SPACs can have risks such as less transparency, potential for overvaluation, and the possibility of not finding a suitable target for acquisition.
Can you give me examples of successful SPACs?
Sure! Some successful SPACs include DraftKings, Virgin Galactic, and Nikola, which have all made headlines after going public.
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