Gores Group Launches Its Fifth SPAC. Should You Invest?
A special purpose acquisition company (SPAC) is a publicly traded shell company that raises capital for the purpose of acquiring a privately held company. SPACs raise money through initial public offerings (IPOs) and use the funds to purchase companies, effectively taking them public. SPACs have become more popular in 2020 as investors have invested with the hopes of striking it big on the next high-profile IPO, and companies have found the SPAC structure to be a convenient source of liquidity.
The Gores Group is no rookie when it comes to developing SPACs -- the investment firm has just filed for its fifth. Gores Group is fully capitalizing the moment that SPACs are having, which has led some investors to dub it the "King of SPACs."
Will the new entity be as successful as prior iterations?
Source Fool.com
