What's the difference between a SPAC and an IPO?
In an IPO, a private company issues new shares and, with the help of an underwriter, sells them on a public exchange. 1 In a SPAC transaction, the private company becomes publicly traded by merging with a listed shell company—the special-purpose acquisition company (SPAC). The main advantages of going public with a SPAC merger over an IPO are:
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