What is a SPAC?

Recode Daily

Recode

Society & Culture, Science, Technology

4.6 • 1.3K Ratings

🗓️ 10 March 2021

⏱️ 7 minutes

🔗️ Recording | iTunes | RSS

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Summary

S-P-A-C. It’s an acronym we’ve been seeing everywhere. But what is it? Don’t worry, we had the same question. The quick answer is SPACs are a new(ish) part of the stock market and investment ecosystem. But since we like to explain things here at Vox, we asked Recode reporter Rani Molla to help us catch up with the trend that’s taking Wall Street by storm. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	If you've been paying attention to business news recently, you may have seen an acronym
0:08.8	that you didn't quite understand.
0:11.3	Four letters, S-P-A-C.
0:15.1	What is a SPAC?
0:16.6	The quick answer is that SPACs are a new-ish part of Wall Street, and they're taking the
0:21.5	financial ecosystem by storm.
0:24.5	And Rico Jranimola has been writing about SPACs and is here to explain for the Rico
0:28.5	audience what exactly this four-letter acronym is.
0:31.4	Hey, Ronnie.
0:32.4	Hey, Teddy.
0:33.4	Okay, so give me the quick 30-second version.
0:35.4	What is a SPAC?
0:37.0	And why are people hearing about these so much recently?
0:40.2	A SPAC is a shell company that goes public for the express purpose of raising money in
0:46.3	order to buy another company and take a public.
0:49.4	It's just sort of a fast track to making something public.
0:52.6	Okay.
0:53.6	To go public, meaning when I start up or a company that you and I start wants to have
1:00.4	its shares traded on Wall Street, like Apple or Facebook or GM.
1:04.4	But here, you're saying rather than the company just going public, you know, and doing this
1:09.8	big dog and pony show on Wall Street and bringing the bell and all that stuff, you're
1:14.8	saying somebody else does that stuff and then they buy you.
	...

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