Why Kensington Capital Stock Is Charging Higher Today
Shares of Kensington Capital Acquisition (NYSE: KCAC) jumped 18% at the open Friday after the special purpose acquisition company, or SPAC, said its pending merger with QuantumScape is nearing completion. QuantumScape is an early-stage company with a lot of potential and a lot of uncertainty, but investors appear excited by the chance to own its shares.
Kensington Capital was formed earlier this year as a so-called blank-check company, which is a shell that goes public and then merges with an existing business. SPACs have been a popular route to the public markets this year, with Virgin Galactic Holdings, DraftKings, and Nikola among the companies that have gone public that way in the last 12 months.
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Source Fool.com
