SPACS, or special acquisition companies, are becoming a popular way to raise money. It is a unique and innovative concept that, on the surface, doesn’t seem to make sense.
A SPAC is a company that raises money from investors to acquire another company. They are typically listed on an exchange and have a board of directors and management team.
SPAC investors are betting that management can identify target companies with stock prices undervalued by the market and buy them at a discount within this time frame.