On: Bill Ackman to wind down SPAC, return $4B to inves...

[SkyMarshal]

How would they have lost money, other than management fees, if none of it was invested?

[missedthecue → SkyMarshal]

You bought shares on the secondary market above the listing price. You are only receiving money at the listing price. i.e.:

1. shares listed at $20, I buy one, paying Ackman $20

2. I sell it to you for $30, you pay me that money

3. Ackman returns $20 to you

It also works the other way around if you bought it from me below $20. You'd make a profit.

[abakker → SkyMarshal]

Opportunity cost - you locked up your money and it lost value due to inflation instead of being put into something that kept pace with inflation. Obviously, this is counterfactual, but that is the premise.

[giantg2 → abakker]

The flip side is that statistically one would have likely put it in a security that declined over the past year.