Hints of SPAC-ulation?

Investors should tread carefully with SPACs (special purpose acquisition companies), as costs and dilution post-merger may be larger than those borne via traditional IPOs. SPACs are like IPOs in that that they raise capital to take companies public. They are also referred to as “blank check companies” and are like a mystery box—investors won’t know what it eventually holds until it finds a suitable target company. Learn more about SPACs here in this investment strategy update.