1 Big Risk of SPAC Investing

Matthew Frankel, CFP, The Motley Fool
·4 min read

A big investor safety net when it comes to SPAC investing is that if the "blank check" company isn't able to find an acquisition target, investors get their money back. Well, sort of. Many SPACs trade at a big premium to the actual amount of money they have, and investors need to know and understand this risk factor.