If you aren’t sure what SPACs are, don’t worry—you’re not alone.
A SPAC, or special purpose acquisition company, is a publicly traded company created only to acquire, or merge with, another business seeking to go public. The concept can be pretty confusing to the average investor, but they’ve been rising in popularity as an alternative to traditional IPOs since the 2000s, and have generated headlines as a result of celebrity involvement.
In this edition of the Leeds Business Insights podcast, professor Sarah Zechman, chair of the accounting division at Leeds and an expert in financial communications and disclosures, explains the risks and opportunities of SPACs and offers insight into why they have become one of Wall Street’s hottest trends.
See also: Behind the Blank Checks: Leeds Research Takes a Crack at SPACs
“People at this point are looking for alternative investments,” Zechman said on the show. “I've seen a lot of creative investments out there, and SPACs are one of them that are a bit different.”
Leeds Business Insights features conversations with alumni, faculty and others in the Leeds community, who discuss current challenges in business and offer actionable takeaways to help you solve problems and advance in your career. You can find an episode summary on the Leeds website, and can subscribe wherever you get your podcasts.