Often times, this means you're one of the first investors in a newly public company without having to buy at the inflated IPO price. Take a look at a few of the big winners over the last year and the exciting new companies they created. Social Capital Hedosophia Holdings did an IPO at $10 a share. A year ago, it announced it was merging with Virgin Galactic Holdings Inc. Virgin Galactic stock has more than doubled since then. In December, Diamond Eagle Acquisition announced a merger with DraftKings Inc. That stock has more than tripled since then. VectoIQ Acquisition announced in March that it was merging with electric truck manufacturer Nikola Corp. (NASDAQ: NKLA), and that stock has also more than tripled too.Īs you can tell, SPACS can work and deliver huge profits to their investors. But keep in mind that not all of them work. We have seen many SPACs announce deals the market didn't like, and the stock fell through the floor. How to Know When a SPAC Makes a Good Deal Several SPAC stocks bit off more than they could chew and went bankrupt.
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#How ican tips with uber in dallas how to One of the other benefits of SPACs is investors have the chance to take their money out if they don't like a deal. Once a deal is announced, shareholders get to vote on the deal. If shareholders reject the deal, all the money is returned. The key thing to understand is that at that time, you can also choose to back out of the deal individually and get all or most of your initial investment back. Just Released: Our new Premium Stock Pick not only held its ground against the COVID-19 market sell-off it actually gained in value. And it's going to keep climbing on a major new catalyst. You have the opportunity to pull out after a deal is announced too. #How ican tips with uber in dallas how toĪll of the money invested in the SPAC goes into a trust invested in short-term treasuries.