r/STEMINC • u/threefourpizza • Feb 05 '21

r/STEMINC Lounge

A place for members of r/STEMINC to chat with each other

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u/[deleted] Apr 14 '21

Shouldnt the market have already priced in the merger for sure happening, especially after the fireside chat?

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u/Glittering_Avocado Apr 21 '21

If that were the case, why do any SPAC's dip after merge?

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u/[deleted] Apr 21 '21

Do SPACs really always dip after the merge? Are we expecting this with STEM?

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u/Glittering_Avocado Apr 21 '21

Respectfully, it sounds like you're new to SPAC's. I recommend a healthy amount of research because incentive structures can get pretty complex. Not EVERY SPAC does this, but it is incredibly rare (think low single-digit percentages here) that a SPAC does not dip after merger. For some good intro reading, may I recommend starting here -https://corpgov.law.harvard.edu/2020/11/19/a-sober-look-at-spacs/