/biz/ - Business & Finance

https://www.forbes.com/sites/forbesfinancecouncil/2021/03/22/just-the-facts-on-spacs/?sh=702b54a94fb4

>With valuations for the market, as a whole, near historic highs, buying SPACs at or near NAV can provide a favorable risk/reward. Because the SPAC holds in trust safe securities, its NAV should not deviate too far from $10, given the opportunity for arbitrage there. In other words, the downside may be limited. On the other hand, if investors become enthused about an announced deal, we are seeing SPAC shares trade well above NAV. Of course, as the share price increases above NAV, the cliched margin of safety declines, and the risk becomes more like that of any other stock.

>futes