Special purpose acquisition companies (or SPACs) aren’t entirely new, but they’ve made headlines in 2020 and 2021. SPACs take funds from investors in order to buy or merge with another company. They’re sometimes called “blank check” companies because it’s as if investors are giving the companies a blank check to buy whatever sort of business they want. Until a merger is announced, investors in a SPAC don’t know exactly what they’re buying or trading.In this episode, Mark Riepe interviews Schwab’s chief investment strategist, Liz Ann Sonders. Mark and Liz Ann discuss how SPACs work, how SPACs compare to the traditional IPO process, and whether they are right for you as an investor. Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit Schwab.com/FinancialDecoder.If you enjoy the show, please leave us a rating or review on Apple Podcasts. Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Whether you are investing in a SPAC by participating in its IPO or by purchasing its securities on the open market following an IPO, you should carefully read the SPAC’s IPO prospectus as well as its periodic and current reports filed with the SEC pursuant to its ongoing reporting obligations.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. (1121-1G8P)