This story was originally published here.
We’re currently recovering from one of the most destructive economic shocks in history… but you wouldn’t know it from the number of companies that have gone public recently.
There has been a surge of initial public offering (IPO) activity in recent weeks; IPO Authority editor Monica Savaglia wrote about Airbnb’s plans for an IPO last week.
But perhaps the more interesting phenomenon is the growing number of companies sneaking their way onto exchanges without going through the conventional IPO process. Many, including Nikola (NASDAQ: NKLA) and DraftKings (NASDAQ: DKNG), are circumventing the process through mergers with special purpose acquisition companies (SPACs).
Let’s look at how these mysterious shell corporations work and the pros and cons of investing in newly public companies through SPACs…
Editor's Note: Click here to keep reading.