Should You Invest in a SPAC?

November 1, 2021
Is investing in a special purpose acquisition company (SPAC) right for your portfolio?

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After you listen

  • Learn more about SPACs in this article by Liz Ann Sonders and Kevin Gordon: "SPACs: What Investors Should Know Now."
  • To invest in SPACs at Schwab, you must enroll in trading services. You can learn more about trading at Schwab.com/Trading.
  • Learn more about SPACs in this article by Liz Ann Sonders and Kevin Gordon: "SPACs: What Investors Should Know Now."
  • To invest in SPACs at Schwab, you must enroll in trading services. You can learn more about trading at Schwab.com/Trading.

Special purpose acquisition companies (or SPACs) aren't entirely new, but they've made headlines in 2020 and 2021. SPACs take funds from investors in order to buy or merge with another company. They're sometimes called "blank check" companies because it's as if investors are giving the companies a blank check to buy whatever sort of business they want. Until a merger is announced, investors in a SPAC don't know exactly what they’re buying or trading.

In this episode, Mark Riepe interviews Schwab's chief investment strategist, Liz Ann Sonders. Mark and Liz Ann discuss how SPACs work, how SPACs compare to the traditional IPO process, and whether they are right for you as an investor.

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