What is a SPAC? 6 Best SPACs to Buy

6 SPACs investors should know.

Rather than dealing with the hassle of an initial public offering, an increasingly popular alternative for private companies is to become the of a reverse merger courtesy of a SPAC. SPACs, or special purpose acquisition companies, go public strictly to raise funds in order to acquire private companies. Also called “blank check companies,” SPACs usually have two or three years to make a deal before they have to return the funds to investors. SPACs have existed since the early 2000s, but they have recently enjoyed a resurgence in popularity. In 2015, 20 SPACs went public; in 2019, 59 SPACs hit the market. That number has already been eclipsed as of August 2020 — but with more options than ever to choose from, prudent investors will do their homework to determine the best SPACs to buy. Here are six solid picks.

The top SPACs to buy now:

— Pershing Square Tontine Holdings (PSTH.U)

— RedBall Acquisition (RBAC.U)

(FEAC)

(CCIV)

— Deerfield Technology Acquisition Corp. (DFHTU)

— CC Neuberger Principal Holdings II (PRPB)

Source: USA News