01-12-2021, 05:42 PM
What happens when you invest in a SPAC?
<!-- SC_OFF --><div class="md"><p>When you buy shares of a SPAC, and then the SPAC merges with a company to ‘Faux-IPO’ it, will the share price adjust such that it is as if you bought what the company would have IPO’d at? For example, if a SPAC IPO’s at $15 but is trading at $30, and they find a company to merge with and the price will be $95, is the financial end-result about the same as the company going the rough the IPO process and pricing/debuting at $95? Will you benefit from the same potential upside (and downside) of day 1 volatility?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/the_haawk"> /u/the_haawk </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/kuugs2/what_happens_when_you_invest_in_a_spac/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/kuugs2/what_happens_when_you_invest_in_a_spac/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>When you buy shares of a SPAC, and then the SPAC merges with a company to ‘Faux-IPO’ it, will the share price adjust such that it is as if you bought what the company would have IPO’d at? For example, if a SPAC IPO’s at $15 but is trading at $30, and they find a company to merge with and the price will be $95, is the financial end-result about the same as the company going the rough the IPO process and pricing/debuting at $95? Will you benefit from the same potential upside (and downside) of day 1 volatility?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/the_haawk"> /u/the_haawk </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/kuugs2/what_happens_when_you_invest_in_a_spac/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/kuugs2/what_happens_when_you_invest_in_a_spac/">[comments]</a></span>Kind Regards R