2 SPACs to Buy Before They Find a Merger Partner
Before a few months ago, I couldn't imagine buying a stock before knowing something about the company I was investing in. But special purpose acquisition companies, or SPACs, have changed that calculus for investors.
SPACs provide a quick and easy way for companies to go public without the hassle of the IPO process. And they have given retail investors a chance to get in on exciting companies before they really hit the market.
But the key to buying SPACs before they merge with a company (and are just a cash holding) is to trust the SPAC leaders or sponsors. After three successful SPAC mergers by Chamath Palihapitiya (and another one announced), his SPACs Social Capital Hedosophia Holdings IV (NYSE: IPOD) and Social Capital Hedosophia Holdings VI (NYSE: IPOF) are worth buying.
Source Fool.com
