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Does the share price always rise after a SPAC (special purpose acquisition company) announces merger with a target company?

I feel the only purpose of a SPAC is to merge with a target company and bring the target company to public.

So, I assume the share price of the SPAC will always rise following the merger announcement.

However, does the announcement always happen after 4:00pm EST?

If this is true, then it is still difficult for retail investors to buy the shares immediately following the announcement?

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  • Perhaps this might be of interest.
    – Bob Baerker
    Dec 4, 2020 at 17:03
  • Yes. This article is very useful. Thanks
    – Jerry Zhang
    Dec 7, 2020 at 4:29
  • @BobBaerker For a SPAC merger, retail investors can buy the stock early in the SPAC merger. In a traditional IPO, institutional investors are the first in line. Do you feel this is an advantage of a SPAC merger for retail investors?
    – Jerry Zhang
    Dec 8, 2020 at 1:24
  • I don't follow SPAC situations so I have no awareness of how they behave pre/post merger.
    – Bob Baerker
    Dec 8, 2020 at 12:13

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