#SPAC.s Sinking 10’s $Billions. #Investors Want #Money Back: The Wall Street Journal: h. . .

#SPAC.s Sinking 10's $Billions. #Investors Want #Money Back: The Wall Street Journal: https://lnkd.in/emxKuVAv: #Hype surrounding ‘#BlankCheck’ companies gives way to #Reality: #QuantumRealities "SPACs—sometimes called blank-check firms—begin as shell companies. They raise money from investors, then list on a #stockexchange. Their sole purpose is to hunt for a private company to merge with and take public. Because the company going public is merging with an existing #publiclytraded entity, it can make business projections and skirt some of the other #regulations associated with #IPO's. After regulators approve the deal, the company going public replaces the #SPAC in the #stockmarket... Upstart companies of all stripes clamored to participate, enamored with the pool of eager #investors who were ready to back them, and enticed by celebrity SPAC creators and #bankers who mint money when they complete deals." "Now, the hype is giving way to reality. Like so many #investment #fads, what at first seemed like a way to earn #easy #money has revealed itself to be full of potential perils. The threat of #tighter #regulation is looming, and high-profile stumbles by some companies that went public via SPACs have taught investors some harsh lessons. It turns out investing in #unproven #upstarts isn’t for everyone, and with interest rates looking likely to rise in coming months, all sorts of #speculative #investments from technology stocks to bitcoin are getting hit." "#Shares of half of the companies that finished SPAC deals in the last two years are down 40% or more from the $10 price where SPACs typically begin# trading, erasing #tens of #billions of #dollars in startup market value. Losses top 60% from the peak about a year ago for many once-hot names like the sports-betting company DraftKings Inc. Inc. and space-tourism firm Virgin Galactic Holdings Inc., founded by British billionaire Richard Branson." "A number of #companies are now #withdrawing from previously announced SPAC deals, even though they sometimes have to pay millions of dollars to the SPAC for backing out." 5-Months Ago We Posted Learn from #Millennial #Investors Who Lost #Millions on A #SPAC: "Buy the Rumor, Sell the News": https://lnkd.in/efFkscHJ : First Lesson Any Investor Learns... #SPAC #Options #Finance #Trading #Markets #WallStreet: "Most investors in #SPACs have lost money over time, with a Renaissance Capital study last year showing a median loss of 29 % between 2015 and September 2020 for the companies’ shares post-merger.": https://lnkd.in/ecB3J39T : AIMLExchange.com: KNOW ALL ABOUT SPACs https://lnkd.in/eA7PjtTi Web https://lnkd.in/eyxyyqRy News https://lnkd.in/eNFZA8xz Videos https://lnkd.in/ewnbmR97 Papers https://lnkd.in/eGSJEd9F We create the Digital Future™: https://lnkd.in/di8AFd5Y: And You Can Too https://lnkd.in/esk8PEp Global Risk Management Network LLC: Silicon Valley-Wall Street-Pentagon-Global Digital CEOs Networks: AIMLExchange.com BRINT.com C4I-Cyber.com