What I Learned In 2020 - John Hempton
The Joe Walker Podcast
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The History of the SPAC
There were a series of what were called blank check companies in the 1970s boom. The money was stolen or invested in assets that belonged to friends of the promoters, and there are 50 other ways it was stolen. So this cycle, people invented the SPAC, which is somewhat different from a blank check company. It usually has an attached warrant, which gives you some upside if the stock should trade above $12.50. And it gives you a vote when the deal comes as to whether you actually want to consummate this deal. But buying your SPAC looks like a one-way bet. Either you're going to get your money back or the stock will trade above $10.
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