Special purpose acquisition companies (SPACs) are shell companies that go public with the intent of buying a private business. Also known as “blank check companies,” SPAC IPOs have increasingly become a popular alternative to the traditional initial public offering (IPO).
A SPAC IPO is offered in units typically consisting of 1 common share and a fraction of a warrant. This fraction can vary by SPAC IPO, but is generally either ½, ⅓, or ¼ of a warrant.
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