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What is a unit?

A unit is a security that trades on the stock market like any other security, but it actually consists of two or more securities that have been bundled together as a unit. The combination of securities that can be packaged as a unit varies. Most often, a unit consists of a share of common stock along with a warrant to purchase additional shares of common stock. Our database currently contains 18 units that are traded on U.S. stock exchanges. See our list of units.

Units are primarily issued by special purpose acquisition companies, or "SPACs". SPACs are also known as blank check companies or shell companies. In fact, SPACs often go public by first issuing a unit, rather than issuing a common stock. SPAC units initially offered through an IPO usually consist of a common stock and a warrant to purchase additional shares of common stock. A few months after going public by issuing a unit, many SPACs will then separately have the common stock and/or warrants start trading under their own stand alone symbols.