Spacs: the blank-cheque blitz of 2020
Special purpose acquisition companies, or Spacs, have taken Wall Street by storm this year. Spacs are shell companies that raise money by listing on the stock exchange. They have no business plan other than to acquire a company that will eventually go public. Spacs have raised more than $55bn this year, but as the FT’s Ortenca Aliaj explains, they may not be the best return on investment.