NEW YORK – Jay-Z, Shaquille O’Neal and Martin Luther King III have been among the prominent figures to recently join Wall Street’s SPAC craze.
Companies entering public markets turned to these investment vehicles in a big way in 2020, but SPACs have gotten attention from regulators and raised questions in the broader market.
– Merger vehicle –
A SPAC, or “Special Purpose Acquisition Company,” has no commercial activities but is established strictly with the intent of entering public markets.
SPACs are listed on the stock exchange as public companies and raise money through their initial public offering, typically…
