Blank-Check Stocks Engulfed in Market Selloff After SPAC Frenzy

(Bloomberg) — After all the hype around blank-check companies earlier this year, things have gotten ugly, with those shares selling off amid a stock-market rout.The Defiance Next Gen SPAC Derived ETF (SPAK), which primarily tracks companies that raise money for buying businesses, has plunged more than 14% since its October debut. Online sports-betting company DraftKings Inc. has tumbled about 40% this month, while Virgin Galactic Holdings Inc. — a developer of space vehicles — is down about 9%.Special purpose acquisition companies, or SPACs, have become a hot area of the market as a way for purchasers to avoid the costly …read more

Source:: Yahoo Finance


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