I am new to investing and hear alot of SPAC merging with start up companies or well established companies, DO you think it is good to invest in SPAC?

Hi Ravi,

SPACs are the most misunderstood investment tool in Wall Street and the VCs do not want you to know them as much as possible. The main street has no idea how it works. Besides buying high quality penny stocks, it is one of the best ways today to capture gains like owning Amazon when it was trading for less than $10. If you buy SPACs at the right prices, you can never loose your invested capital. Why so? SPACs are priced at $10 and if you never buy above $10, you are guaranteed capital return should the SPAC failed to bring a private company to IPO within a stipulated time frame. This is possible if you placed a, say $9.95, GTC order in your broker. The recent sell-off and bad reputation provide an excellent entry opportunity for main street to buy certain high-quality managed SPACs at huge discounts and realizing that warrants can provide an additional boost when the reverse merger happens.

Good Investing!

Stay away if you dont know what you are doing.