I have been hearing and reading a lot on SPACs (seems all the rage these days) but it's pretty hard to find comprehensive litreature on how one goes about buying/selling a SPAC, risk vs return, holding period etc., so I thought of starting a topic, in the hope that people can share their knoweledge on the matter.
Things I am interested in are:
- SPAC units vs SPAC shares/warrants
- How can one split a SPAC unit into common shares and warrants
- Best time to split the unit into shares/warrants
- Once a SPAC identifies and merges with a target - do the SPAC units automatically convert into shares of the new entity and at what price?
This is not an exhaustive list, so please feel free to add anything that comes to mind.