SPAC vs. Traditional IPO Story

SPAC vs. Traditional IPO

When a private company decides to go public, there are several options for making the transition that allows for the general public to purchase shares of the company on the open market.

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The most common way this was done in the past was via a traditional IPO. In 2020, the SPAC exploded in popularity as a speedier vehicle to get a company to market.

Here’s a deep dive into how both SPAC IPOs and traditional IPOs work, as well as what to consider before investing in either.

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SPACs, which stands for special purpose acquisition companies, are shell companies that raise money by listing shares on a stock exchange.

- Faster timeline - Less expensive - To avoid volatility - Regulatory oversight

What Is a Traditional IPO?

An initial public offering or IPO is the process of a private company offering shares for sale to the public. This is typically done throu gh “listing” shares on a stock exchange, where investors can then buy and sell stakes in the company. Read More

- Sponsor promote - Regulatory uncertainty - Cooling enthusiasm

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