Is the blank-check bubble bursting?
Shares of many special purpose acquisition companies are down 20 percent or more from the highs they hit in February. Many of them are blank-check companies that have announced merger partners but haven’t yet closed their deals.
Several of these stocks are straddling their initial public offering price — generally $10 — or even trading below the IPO price even though they will soon become operating companies, not just shell companies.
For
