What is a SPAC? | CNBC Explains
ฝัง
- เผยแพร่เมื่อ 8 พ.ย. 2020
- Despite a shaky reputation, special purpose acquisition companies are among the hottest stocks of 2020. CNBC’s Nessa Anwar explains why investors are buying into these blank-check companies.
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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 🤣
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!
Good job for explaining SPAC very clearly.
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?
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??
Pitching SPACs while standing in front of a wework office 1😂😂
It has to be intentional haha
Very informative, thank you!
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
SPACtacular video CNBC your content is always a pleasure to watch
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 ?
Bravo on the clear explanation! Thanks!
Thank you for the explanation, great job!
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.
well explained. Why people give thumb down I dont understand
Great video, eg explains the concept well.
That's really brilliant!!
Man that Wework building in the background is ominous
The komono is so nice!
May u tell, whether SPEC news impact positively or negative on perticular stock price!?
thank you for input.
Thank you for explaining so easily!
Glad it was helpful!
Yes
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
A great explanation
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
Hey does anyone know if cciv confirmed?
I will invest if I am allowed to print money only. This looks to me like another subprime crisis of 2008 in waiting.
Narrator very well presented... Clear and purposeful... Thanks.
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
2:41 the office of Wework in the background the making headlines.
How is it different from investment banks? And how will others make it fail? Or will innovate to avoid being a second Greensill?
Nicely explained.
Well said. Thanks!!!!
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
so....let me get this straight, recently i've come across an article talking about { Farady Future FF91 } merging with { SPAC } set to raise $1 Billion in IPO. this means...1 small garage store car manufacture and 1 blank cheque company with loads of money merging together. So..what are people buying...? Just The Story ..?? { BS } if any ?
I did little research about SPAC.
In early 2022, due to regulations, issued April 202, oversights and less performance than expected, SPAC has lost its popularity in 2023.
In fact, Softbank, a large telephone company based in Japan, established 3 SPACs and they had to liquidate 2 SPACs.
Invested money will be returned to investors but for those who bought their trusts when they were high will lose money.
It's just a search fund with capital raised by people with money
She’s a great host.
I know what you did here.
2:40 wework , nice to show for inspiration
i made some decent money on SPAC and i think they allow an individual to invest early on... of course you have to exercise caution and be happy with what they are buying.. if not you can always get out before the merger... it is that simple.... , considering rediculous valuation out there... this appears to some lime me less risky because the money is held in trust until you know what they are purchasing and then you can make a decision... you just have to do your homework
It may sound cliché, but it goes like this, a fool & his money will soon be parted!
How is this not a bubble?!
I’ve bought into a couple and made a nice return.
well explained
Seems you are in Singapore
valuable video
That's Insane @4:40
the big issue with spacs is that there isnt a thorough review process required (S1 sec filing) before a company is listed.
Companies with real issues internally could easily get access to the stock exhange that way.
Recent example that proves this issue, is Nikola which is just a complete fraud. For sure Nikolas fraud would have been found way earlier if it would have gone through an S1 process.
If you don’t want to hold for long term spac “hypothetically speaking” Can you buy these SPACs for 10-11$ 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
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.
Gordon Gekko said after leaving prison "greed is good" now seems to be "greed is legal"
How can i get Paycheck !!
spac is nothing other that reit of 20008 housing debt
Nope, REITS are not mergers, SPACs are basically mergers.
CCIV... how can you not love SPACs?
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
Risk free !!
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.
Yeah. International
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.
“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
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.
Stonks only go up tho🐸🤙🏻📈📈
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??
That's one of the biggest reason you shouldn't invest speak with soft bank about that
Fun fact: You can buy BitCoin at the trainstations in Switzerland ( :
@chetan Sood 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! ( :
@chetan Sood The more demand, the higher the price. If you are holding bitcoins, you want more demand. You should always spread the info!
Made some money from SPAC acquisitions such as XPEV and DKNG. ;-)
What are these SPACs valued against?
Lies by promoters
Trust! So nothing CLEARLY
I did by accident....but it's working out great
I love how they got wework in the background showing the lies they selling
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.
Wall Street keep surprising main street 😄
$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.
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!!!
Yes I will invest in spacs
leadership.......D
O S
Fun Fact someone loves you somewhere
Well its SPAC isn't it 🤣
Also known as punting the market
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.
How well did this video age?
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
IPOs are usually stupidly expensive for retail investors. Do you wanna pay $189 a share for Doordash? Or $20 for a SPAC. hmmm
Sounds like a scam to me.
A SPAC is NOT an asset class.
this might not be true for some investors. But sure hope they know hat they are doing.
@Thomas Headley Promises to the people are sometimes the more deeper value some have. I have seen stories in the end of some that just sad mistakes. I think some dare not repeat.
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.
Why did SPAC suddenly started booming in 2020 is not clearly explained.
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
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
Bill Ackman,Peter Thiel
try to shutdown IPO mode
company
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???!
So is this the stock bro's answer to us screwing them over via gamestop? Pretty sure it is.
Why is nobody sounding the alarm? We may be heading towards something much worse than 2008. SPAC my foot. This is gambling, not investment.
My name is Alexandru Spac
Amazing
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!
I thought spac was sub prime acquisition company.
"Sub prime=s***", (the big short, Margot Robbie)
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.