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SPAC Era Comes to a Whimpering End as Wall of Redemptions Nears

June 24, 2022, 9:00 AM

SPACs were one of Wall Street’s hottest trades during the pandemic bull market that finally came to a crashing close in June. Special purpose acquisition companies, also known as blank-check firms, go public without having a business yet. Instead, they’re formed to raise money so that they can buy another, still-private company to be chosen later. SPACs captured the imagination of a lot of ordinary investors who saw them as a way to get in early on promising startups before they went public.

The fad also attracted a range of Wall Street titans, athletes, and celebrities looking to get a ...