Return to Blog

SPACs: Special Purpose Acquisition Companies

On this week's episode of the Wiser Roundtable podcast, the team discusses a craze that has taken Wall Street by storm recently. SPACs are special purpose acquisition companies, essentially shell companies that raise money from investors through stock-market listings.

Listen on Apple Podcasts

Or through YouTube:

SPACs are the topic of today's podcast. SPACs are special purpose acquisition companies, essentially a shell company that raises money from investors through stock-market listings. They are also known as a "blank check" company. These SPACs are shell companies that have no assets other than cash from investors.

According to the U.S. Securities and Exchange Commission (SEC), a SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set timeframe. SPACs raised a record $83 billion in 2020, a period sometimes referred to as the "blank check boom."

Because a SPAC is registered with the SEC and a publicly traded company, the general public can buy its shares before the merger or acquisition takes place. For this reason, they've been referred to as the 'poor man's private equity funds.'

There are also SPAC index funds for retail investors to choose from. The team discusses this as an investment option.

Finally, the team has a special bonus round about NFTs (non-fungible tokens). An NFT is a new type of digital asset. Ownership is recorded on a blockchain — a digital ledger similar to the networks that underpin bitcoin and other cryptocurrencies. Each NFT is unique and can't be duplicated.

Timestamps:

0:00 Introduction

1:58 What are SPACs?

4:50 Who manages them?

6:00 What is de-SPACing?

10:20 Where is the money coming from?

13:30 What does the investor receive?

14:30 ETFs

18:30 Not all interests are equally rewarded

21:20 NFTs

Links:

Learn more about Casey Smith and connect with him on Twitter.

Learn more about Brad Lyons.

Learn more about Matthews Barnett.

Learn more about Wiser Wealth Management and connect on social media:

Twitter, Instagram, Facebook, LinkedIn, and YouTube.

Learn more about the Wiser Wealth Management Roundtable podcast and access previous episodes.

Casey Smith, President of Wiser, gives his thoughts on the Greenlight debit card for kids. Not sure if the card is worth it? Watch the video to learn some pros and cons about it.

https://conta.cc/2XnBpfV #greenlight #greenlightcard #money #kids #parenting

Many people approaching retirement age plan to claim Social Security as soon as they are eligible at age 62, but is that the best time?

https://conta.cc/3hDVDct #socialsecurity #ss #retire #retirement #retired #money

On today's episode of the Wiser Roundtable Podcast, the team talks about ways to maximize social security and why it is important to do so. Listen wherever you get your podcasts!

#socialsecurity #investing #ss #podcast #money https://conta.cc/3nzLXU9

Unsure if a lump sum or pension annuity is better? Watch this video to find out!

#lumpsum #pension #annuity #annuities #finance #money #investing #invest https://conta.cc/3tx7M88

Not sure why it is important to retire mortgage free? Read today's blog to find out! https://conta.cc/38Rb1h5

#retire #retirement #retiree #retired #mortgagefree #mortgage #debtfree #debt

125 Church Street NE
Carmichael Building, Suite 220
Marietta, Georgia 30060

Company

Services

Client Access