What is a SPAC? Are SPACs a Smart Investment Option for 2022?

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A SPAC is a company that raises money from investors to acquire another company.

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They are typically listed on an exchange and have a board of directors and management team. Once they raise enough money, they will find a company to buy.

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SPACs have been around for quite some time, but in 2020 there was a sizable SPAC boom.

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248 SPACs went public in 2021 and raised a total of $83 billion. For comparison, there were only 59 that went public in 2019 and raised $13 billion.

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SPAC History

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Since then, they have acquired companies such as Hertz Global Holdings Inc., Burger King, and Red Roof Inn.

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SPACs exist in pretty much every industry. They have been used to acquire banking, oil, gas, real estate, retail, and technology industries.

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Swipe Up

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