Spacs: why investors fell in love with these stock market vehicles – and how the bubble burst
- Written by Daniele D'Alvia, Teaching Fellow in Banking and Finance Law, Queen Mary University of London
What do Taylor Swift’s record company and Asian “superapp” Grab have in common? They are both part of Wall Street’s recent dealmaking fad: special purpose acquisition companies (Spacs).
Spacs are shell companies that are floated on the stock market with one purpose: to buy another company. This aims to achieve the same as a...