What is a SPAC? | CNBC Explains 

and the dot com bubble of the 90's. they're doing it again but not hiding it this time.

Didn't the video just say SPACs were created in the 90s as a last resort for companies to go public? 1:54

@@hyunkim1223 nicely spotted. What’s your opinion on spac?

@@hyunkim1223 he is not taking about its creation date, but "market hype date"

@@hyunkim1223 yeah like CDO's were created way before 2007

That’s why PSTH is so wonderful:) no founders shares!

@@tacohero10 Bill Ackman is part of the Giving Pledge: He's a good person. Hell, he even bought a $65MM warrant for his SPAC.

could you please elaborate more on house flipping craze and day-trading?

Not really, left me more confused than ever. What’s the need of a blank company to acquire another? To not pay fees when the acquired company goes public??

I totally agree

3 years on and it looks a lot like a scam

@@philipmeisterl. Perpetrated by Chamath Palipapapapatia. Look closely when he speaks.

in short it is gambling?

Damn right

@Kyle I disagree Kyle, Of you're investing in a SPAC there's zero input from you the investor... You just described doing YOUR OWN investing.

A SPAC does not have to be started by a Wall Street guy. that is a big difference.

Yes. Like Mutual Fund buy on a bigger level and for one company!

Oh no, the investment bank involved also gets a fee :). SPAC fees are usually bank (~5%) + Sponsor (~20%), so 4-6X that of a traditional IPO.

@@julisamarmolejos1922 then why would investors want to invest via SPAC if it is more expensive ?

Thank you! Yes, Nessa is based in Singapore.

@@CNBCi Yes, more videos like this! She very clearly gave a great overview

2X- 5X??? They said average return is 2%

@@EXMUSLIM4264 He is, but soon people will understand that.

@@EXMUSLIM4264 hater

What does 2X -5X mean?

@@rubbertomleung it has gone up by 2 times or 5 times. For example, if the stock price was $5 few months ago, and now it's at $25 that means it has 5x. 5×5=25.

It has to be intentional haha

Scam like Cz Binance and Tron

Hahahahaha sucks for you

Isn’t that way of everything in life

I know what you did here.

Nope, REITS are not mergers, SPACs are basically mergers.

SBE and RMG and many others had a great run in November. Make big money while you can.

Wkhs and RIDE tho

How do you get involved in purchasing SPACS?

@@alexw6017 Open a brokerage account

I know right? …then shareholders get all the stock discount and walk away with their money first I’m sure.

She just said it's your capital locked up until they "buy" something within a timeframe or your money is returned usually 2 years. It's a horrible idea. If you are a SPAC sponsor and haven't found anything good in 6 or 12 months what are you going to do? Find something so you don't miss out on 20% of the pot! 🙈 No wonder they underperform. That's probably being polite for saying most crash and burn

Why it is just a company merger. You cannot make company acquisition illegal. As long as the SPAC entity is properly registered company they can acquire other companies.

@ why?

Fun fact: you can do that in over 70 countries, including US... I'm from Slovakia and we also have these kiosks where you can buy BitCoin. It's just like a regular ATM, they are usually in shopping malls, stations etc. Here is a list of countries with locations of these kiosks/ATMs coinatmradar.com/countries

@@vkdrk Oh shit that's pretty cool man i didn't know that, thanks for letting me know! ( :

@ The more demand, the higher the price. If you are holding bitcoins, you want more demand. You should always spread the info!

2020 is the year of SPAC???? Have you been living under a rock?

The years of the ICO's were earlier than 2018. I remember attending crypto conferences four or five yrs ago and everyone was rolling out new cryptos. Most of them are gone now., but 2020 is definitely the year of the SPAC.

@@markrobertdevison1227 def agree w/ u here. I think 2018 was the height of the mania which resulted in the crash of BTC and the obileration of a shit ton of shit coins.

You spelled “ton” and “SPAC” incorrectly. Deliberate? I don’t know, but this doesn’t look like a mistake someone who made a ton with SPACs would make

We are too busy making big money to worry about spelling.

You spelt GIK wrong

$UWM !

from over 13 now just above 10

@@evanwhite3415 still took off great just in opposite direction lol. Not panicking. Still gonna hold long term.

Glad it was helpful!

you have no idea what you are doing -- if you just day trade them you are safe--- they are not investments!

@@yakkyuu12 take her advice,,sell after an aquisition is made

How do you get involved in purchasing SPACS?

@@alexw6017 Just Google; "List of SPAC stocks" Just remember, these are just very wealthy groups of people who just put pile of cash together in HOPES of making deals with MANY VERY small companies who MIGHT ( I DID say -- MIGHT) have good products or a LOT of important PATENTS ---- but they LACK CASH, their stock MIGHT be very good, but NO ONE or LITTLE attention in the way of stock price is MOVING, MNY TIMES the SPAC PILE Of CASH ----- buys OR MERGES 2 or MORE companies that have products that REALLY NEED --- ANOTHER COMPANIES products --- to REALLY MAKE IT a POWERFUL entity--- the SPAC MERGES these companies under the spac name and the PILE of cash -- NOW can CREATE a REALLY good compliment of the 2 or more companies!! SO--- SPACS are JUST a SHELL created by VERY, VERY WEALTHY people --- it is a BIG PILE OF CASH--- looking for GOOD INVESTMENTS --- that NEED the CASH to get a GOOD HOLD ON its market they compete in!!! These SPACS are on the stock market--- JUST GOOGLE for list and put them in Yahoo finance to see their stock price!!!

I only 20k

Thats fantastic. I'm right up there too.

Anyone have any suggestions on which ones to invest in & when?

@@1984resistant I like SBE a lot, future looks very bright. Opened a position at 26. RMG looks very promising, just starting to take off. I just opened a position last week and I'm up just a bit so far. The other one I really like is CIIC. I like how they are going about their EV business. I have a position in it as well. Opened a position at 16, currently trades at 24. Last but not least APXT. I have more a strong conviction that one will be a huge winner. Hope that helps you. Happy investing!

Lol me too 32k

IPOE

vs normal stock... which is grown and stays thru-out the life of the stock - so long as fundamentals do not change .... the difference in reporting on something u don’t know... and what an investor in stocks sees as a common thing

If someone tells you we are in a bubble, take advantage and invest big.

Also known as punting the market