SPAC ATTACK: What Happens When Hot IPO’s and Financings Hit the Market in Tech and Gold

Leading the charge and fury in the IPO markets are SPAC's, short for Special Purpose Acquisition Companies.

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SPAC ATTACK: What Happens When Hot IPO's and Financings Hit the Market in Tech and Gold

Initial Public Offering's (or IPO for short) are riding high right now.

You might've heard about the Snowflake IPO making headlines.

It's a company with a special type of deal structure that most investors might not have heard of before.

And leading the charge and fury in the IPO markets are SPAC's, short for Special Purpose Acquisition Companies.

SPAC's start as a shell company and sell shares to investors. It doesn't have any operations or business of its own. The purpose is to acquire one that does.

It's like a backdoor route for large sums of money (think $100 million, or more) to get into the stock market.

Investors and the private equity funds behind these SPAC's love it because there is much less underwriting.

And the paper pushing process through the SEC is easier.

Much like private placements in the red-hot mining space – which we'll get to in a moment – SPAC's have rules...

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