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4 Reasons I Just Bought This SPAC Stock

TheMotleyFool

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I've started buying SPAC stocks. I now own two of them: Holicity (NASDAQ: HOL) and Nebula Caravel Acquisition Corp. (NASDAQ: NEBC). I love the companies these stocks now represent (Astra and Rover), but I also love this new method that private companies are using to go public.

The process of taking a company public via a SPAC, or special purpose acquisition company, is very different from an initial public offering (IPO). And while there are well-known risks to buying a stock as soon as it IPOs, the risk-reward calculation for buying shares of a SPAC isn't as clearly understood. Those unknowns create a level of fear that keeps many people away from investing in SPACs.

image source: Getty Images

Source Fool.com

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