So the business model is “I will take your money for for $10 a share while you will give me right to 1 share at $.0002 so we can buy other companies. If I am wrong you are wrong big, if I am right you win small and I win big.”
SPAC isn’t the problem, it’s the investors. SPAC expands and offers affordable investment opportunities to the mass. It is up to the investors to do his/her due diligence before buying. Investors can’t fault SPAC companies on their own negligent.
Remember the house flipping craze and the day trading craze back in the day(before tech crash). Wash, Rinse, Repeat. I always know the end is near when everyone is advertising and trying to do it.
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??
While SPACs don't seem like a scam to me, I have two concerns. The first is they seem to be mostly low risk/low return. The second is SPACs appears to be in a bubble, or at least entering one. It's probably too late for the general public to get a piece of this.
@@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.
So basically the best thing to do is: 1. Get in super low (don't chase) 2. Make a few bucks when a deal is made. 3. Get out and don't be greedy 4. Repeat Am I right?
I did little research about SPAC. In early 2022, due to regulations, issued April 202, oversights and less performance than expected, SPAC has lost its popularity in 2023. In fact, Softbank, a large telephone company based in Japan, established 3 SPACs and they had to liquidate 2 SPACs. Invested money will be returned to investors but for those who bought their trusts when they were high will lose money.
so....let me get this straight, recently i've come across an article talking about { Farady Future FF91 } merging with { SPAC } set to raise $1 Billion in IPO. this means...1 small garage store car manufacture and 1 blank cheque company with loads of money merging together. So..what are people buying...? Just The Story ..?? { BS } if any ?
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
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.
There have been several successful SPAC’s . It all depends on whom the Spac is merging with. Once that is rumored then speculation starts. It’s a bit of a jump in the dark but the advantage is that you can get a future good company at a share price which you could never buy
@@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!!!
So basically you are investing in shares of a potential holding company that has 0 track record and 0 assets with the sole faith in that the management will make great acquisitions over time, which in the long run will increase the value of those shares you hold in the company at $10??
The years of the ICO's were earlier than 2018. I remember attending crypto conferences four or five yrs ago and everyone was rolling out new cryptos. Most of them are gone now., but 2020 is definitely the year of the SPAC.
@@markrobertdevison1227 def agree w/ u here. I think 2018 was the height of the mania which resulted in the crash of BTC and the obileration of a shit ton of shit coins.
if the star investors think they know companies too good to be true, why would they open it to the general public? They are not known for their altruism, and they won't in the future.
If you don’t want to hold for long term spac “hypothetically speaking” Can you buy these SPACs for 10-11$ and sell them for 12-13$... or are these spacs buys locked and can’t be sold the next day for an average investor ?
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
i made some decent money on SPAC and i think they allow an individual to invest early on... of course you have to exercise caution and be happy with what they are buying.. if not you can always get out before the merger... it is that simple.... , considering rediculous valuation out there... this appears to some lime me less risky because the money is held in trust until you know what they are purchasing and then you can make a decision... you just have to do your homework
the big issue with spacs is that there isnt a thorough review process required (S1 sec filing) before a company is listed. Companies with real issues internally could easily get access to the stock exhange that way. Recent example that proves this issue, is Nikola which is just a complete fraud. For sure Nikolas fraud would have been found way earlier if it would have gone through an S1 process.
So if I want to buy shares in Sofi, sounds like most commenters believe it's better to just pick it up once it's gone public. Give it a chance to prove itself on it's own.
“A company for carrying out an undertaking of great advantage, but nobody to know what it is.” ― Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds
@@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!
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
So you invest $50 and get a stake in $50 until the company makes an investment in which case you end up with a stake worth $40. What’s holding you back???!
It's a money grab for Wall St, where there's an ignorant investor! I think it's a dishonest and horrible way to take someone's money. My thoughts on Chamath have sunk to below zero now I understand how he made his money! What a shit, dodgy way to live. Trying to cash in on the Fed printing basically.
yes and everything Bernie Madoff did was illegal and provided false information. If a SPAC provides false information it would be illegal too. If a SPAC takes the money and buys a luxury yacht with that money is illegal too. so what is your point about SPACS?
@@MrDavidaslv Simply put these kinds of financial entities should be illegal! So go ahead put your money in a SPAC or whatever the hell you wanna do, go ahead & throw your money down a rat hole, that’s your business not mine, I’d rather lose my money gambling at a casino, at least I would know what odds were!
New asset classes, reminds me of 2007 super awesome times
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
So the business model is “I will take your money for for $10 a share while you will give me right to 1 share at $.0002 so we can buy other companies. If I am wrong you are wrong big, if I am right you win small and I win big.”
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.
I love the snakes and ladders graphic 😅
SPAC isn’t the problem, it’s the investors. SPAC expands and offers affordable investment opportunities to the mass. It is up to the investors to do his/her due diligence before buying. Investors can’t fault SPAC companies on their own negligent.
Reminds me of the scene jordan belfort pitching those cutting edge military radar detectors in wolf of wall street 🤣
Remember the house flipping craze and the day trading craze back in the day(before tech crash). Wash, Rinse, Repeat. I always know the end is near when everyone is advertising and trying to do it.
could you please elaborate more on house flipping craze and day-trading?
So basically instead of investment bank taking fee for taking the company public the sponsors will collect fee
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 ?
So basically SPACs are just a wallstreet guy telling you to invest in a company that will possibly increase in price.
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!
Extremely clear and well-explained with a good use of graphics. Thanks!
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??
While SPACs don't seem like a scam to me, I have two concerns. The first is they seem to be mostly low risk/low return. The second is SPACs appears to be in a bubble, or at least entering one. It's probably too late for the general public to get a piece of this.
I totally agree
3 years on and it looks a lot like a scam
@@philipmeisterl. Perpetrated by Chamath Palipapapapatia. Look closely when he speaks.
Good job for explaining SPAC very clearly.
Pitching SPACs while standing in front of a wework office 1😂😂
It has to be intentional haha
Dropping Chamath’s name all over the video and failing to mention that his SPACs have at least 2X - 5X within the first year.
Sneaky CNBC.
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.
Very informative, thank you!
Awesome, thank you. I love this international style, is this Singapore? Would love to see more of this style.
Thank you! Yes, Nessa is based in Singapore.
@@CNBCi
Yes, more videos like this! She very clearly gave a great overview
SPACtacular video CNBC your content is always a pleasure to watch
I will invest if I am allowed to print money only. This looks to me like another subprime crisis of 2008 in waiting.
Lost all my money in SPAC! A scam the US SEC promoted with "How does investing on SPAC works?" on Twitter. US SEC didn't protect me! Why?!
Scam like Cz Binance and Tron
Hahahahaha sucks for you
So basically the best thing to do is:
1. Get in super low (don't chase)
2. Make a few bucks when a deal is made.
3. Get out and don't be greedy
4. Repeat
Am I right?
Isn’t that way of everything in life
Man that Wework building in the background is ominous
A SPAC is NOT an asset class.
well explained. Why people give thumb down I dont understand
Why is nobody sounding the alarm? We may be heading towards something much worse than 2008. SPAC my foot. This is gambling, not investment.
She’s a great host.
I know what you did here.
The komono is so nice!
I did little research about SPAC.
In early 2022, due to regulations, issued April 202, oversights and less performance than expected, SPAC has lost its popularity in 2023.
In fact, Softbank, a large telephone company based in Japan, established 3 SPACs and they had to liquidate 2 SPACs.
Invested money will be returned to investors but for those who bought their trusts when they were high will lose money.
It may sound cliché, but it goes like this, a fool & his money will soon be parted!
May u tell, whether SPEC news impact positively or negative on perticular stock price!?
so....let me get this straight, recently i've come across an article talking about { Farady Future FF91 } merging with { SPAC } set to raise $1 Billion in IPO. this means...1 small garage store car manufacture and 1 blank cheque company with loads of money merging together. So..what are people buying...? Just The Story ..?? { BS } if any ?
Fun fact: You can buy BitCoin at the trainstations in Switzerland ( :
@ 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!
It's just a search fund with capital raised by people with money
spac is nothing other that reit of 20008 housing debt
Nope, REITS are not mergers, SPACs are basically mergers.
And then they call Bitcoin a speculative asset 😂😂
I know right? …then shareholders get all the stock discount and walk away with their money first I’m sure.
And This is not illegal
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.
Hey does anyone know if cciv confirmed?
Bravo on the clear explanation! Thanks!
Sounds like a scam to me.
I love how they got wework in the background showing the lies they selling
I’ve made some nice coin on SPACS this year. I say ride the EV spac bandwagon till it stops.
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 thought spac was sub prime acquisition company.
"Sub prime=s***", (the big short, Margot Robbie)
Thank you for explaining so easily!
Glad it was helpful!
There have been several successful SPAC’s . It all depends on whom the Spac is merging with. Once that is rumored then speculation starts. It’s a bit of a jump in the dark but the advantage is that you can get a future good company at a share price which you could never buy
SPACs has been good to me.. I guess it’s not for everyone..
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!!!
So basically you are investing in shares of a potential holding company that has 0 track record and 0 assets with the sole faith in that the management will make great acquisitions over time, which in the long run will increase the value of those shares you hold in the company at $10??
Gordon Gekko said after leaving prison "greed is good" now seems to be "greed is legal"
2018 the year of ICOs. 2020 the year of SPACs.
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.
That's really brilliant!!
Seems you are in Singapore
Yes
$GHIV is gonna take off soon!
You spelt GIK wrong
$UWM !
from over 13 now just above 10
@@evanwhite3415 still took off great just in opposite direction lol. Not panicking. Still gonna hold long term.
Thank you for the explanation, great job!
Scam alert.
Stonks only go up tho🐸🤙🏻📈📈
Great video, eg explains the concept well.
How is it different from investment banks? And how will others make it fail? Or will innovate to avoid being a second Greensill?
if the star investors think they know companies too good to be true, why would they open it to the general public? They are not known for their altruism, and they won't in the future.
How can i get Paycheck !!
CCIV... how can you not love SPACs?
Fun Fact someone loves you somewhere
That's one of the biggest reason you shouldn't invest speak with soft bank about that
If you don’t want to hold for long term spac “hypothetically speaking” Can you buy these SPACs for 10-11$ and sell them for 12-13$... or are these spacs buys locked and can’t be sold the next day for an average investor ?
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
Made a tone of money so far in SPCA’s
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.
That's Insane @4:40
2:40 wework , nice to show for inspiration
i made some decent money on SPAC and i think they allow an individual to invest early on... of course you have to exercise caution and be happy with what they are buying.. if not you can always get out before the merger... it is that simple.... , considering rediculous valuation out there... this appears to some lime me less risky because the money is held in trust until you know what they are purchasing and then you can make a decision... you just have to do your homework
the big issue with spacs is that there isnt a thorough review process required (S1 sec filing) before a company is listed.
Companies with real issues internally could easily get access to the stock exhange that way.
Recent example that proves this issue, is Nikola which is just a complete fraud. For sure Nikolas fraud would have been found way earlier if it would have gone through an S1 process.
Narrator very well presented... Clear and purposeful... Thanks.
So if I want to buy shares in Sofi, sounds like most commenters believe it's better to just pick it up once it's gone public. Give it a chance to prove itself on it's own.
IPOE
Well said. Thanks!!!!
I wouldn’t trust Bill Ackman after his deceitful interview during the 2020 March crash. He is slimier than an eel on a rainy day
I’ve bought into a couple and made a nice return.
2:41 the office of Wework in the background the making headlines.
IPOs are usually stupidly expensive for retail investors. Do you wanna pay $189 a share for Doordash? Or $20 for a SPAC. hmmm
valuable video
A great explanation
Risk free !!
Seeing this type of crap tells me market top. But there is no top, cause brrr.
I have to remind myself that shorting has basically been made illegal.
If someone tells you we are not in a bubble.. Don't believe them.
If someone tells you we are in a bubble, take advantage and invest big.
SPACS sounds like SPANX🤣..crypto and spacs will create the next crisis.
well explained
Nicely explained.
thank you for input.
“A company for carrying out an undertaking of great advantage, but nobody to know what it is.”
― Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds
I've made 30k on spacs this year
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
what this DOCU does not tell u - is a lot of the money invested is dumped after SPAC merger.... as investors follow a known slow pump and dump cycle.
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
Fraud....
How well did this video age?
So you invest $50 and get a stake in $50 until the company makes an investment in which case you end up with a stake worth $40. What’s holding you back???!
It's a money grab for Wall St, where there's an ignorant investor! I think it's a dishonest and horrible way to take someone's money.
My thoughts on Chamath have sunk to below zero now I understand how he made his money! What a shit, dodgy way to live.
Trying to cash in on the Fed printing basically.
Well its SPAC isn't it 🤣
Also known as punting the market
Does anyone remember a guy by the name of Bernie Madoff? Bernie I made off with all your money, Madoff!🥸
yes and everything Bernie Madoff did was illegal and provided false information. If a SPAC provides false information it would be illegal too. If a SPAC takes the money and buys a luxury yacht with that money is illegal too. so what is your point about SPACS?
@@MrDavidaslv Simply put these kinds of financial entities should be illegal! So go ahead put your money in a SPAC or whatever the hell you wanna do, go ahead & throw your money down a rat hole, that’s your business not mine, I’d rather lose my money gambling at a casino, at least I would know what odds were!
@@MrDavidaslv Just remember a fool & his money will soon be parted!
Yeah. International
SPAC is a failure
Spac scam 🙄
Made some money from SPAC acquisitions such as XPEV and DKNG. ;-)
Why did SPAC suddenly started booming in 2020 is not clearly explained.
We need a shady way to make money before a bubble pops, says Wall Street Casino Resort and Spa
My name is Alexandru Spac
Amazing
Wall Street keep surprising main street 😄
Yes I will invest in spacs