Special Purpose Acquisition Companies: Why SPACs Are Hotter Than Ever
Going public has long been a key milestone for successful companies to achieve. In the past, having your stock go public through an IPO showed the world that your business had proven itself and was ready to play in the big leagues. Even as the benefits of staying privately held for longer periods of time have become more evident recently, it's still a mark of distinction to have your stock traded on major stock exchanges.
However, the IPO process itself has gotten in the way of some companies coming public. Substantial expense and effort to comply with the regulations governing initial public offerings has deterred many businesses from doing IPOs, and some have sought alternative methods for making their shares available to ordinary investors. One such method involves special purpose acquisition companies (SPACs), and because of some big success stories lately, SPACs are now hotter than ever.
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Source Fool.com
