SPAC Attack: Are SPACs a gimmick, or are they here to stay?

With ambiguous names like SPAC CM Life Science II, GigCapital3 Inc. and Gores Holdings VI, and often with skimpy financial disclosures, special purpose acquisition companies, or SPACs, come with an air of mystery. 

They also come with the potential to earn windfalls for companies and investors. And of course, on the flipside, there’s a mountain of risk.

As these investment vehicles gain popularity, it becomes increasingly important for mom and pop investors to understand exactly where they’re pouring their savings.

A SPAC is a publicly traded shell company with a built-in two-year lifespan that exists solely to merge with another company in order…