What is a SPAC? Are SPACs a Smart Investment Option for 2022?

SPACS or special acquisition companies are becoming a popular way to raise money. It is a unique and innovative concept that, on the surface, doesn't seem to make sense. 

A SPAC is a company that raises money from investors to acquire another company. They are typically listed on an exchange and have a board of directors and management team. 

SPACs have been around for quite some time, but in 2020 there was a sizable SPAC boom. 248 SPACs went public in 2021 and raised a total of $83 billion. 

For comparison, there were only 59 that went public in 2019 and raised $13 billion. 

The first Special Purpose Acquisition Company was created in 1993 by Bill Ackman, Pershing Square Capital Management founder. 

Since then, they have acquired companies such as Hertz Global Holdings Inc., Burger King, and Red Roof Inn. 

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