What is a special-purpose acquisition company (SPAC)?

on January 15, 2021

A special purpose acquisition company (SPAC) is a blank check company. The purpose of a SPAC is to take companies public. The acquired companies are not going through the traditional IPO process but the SPAC itself will. The target of a SPAC is to pool funds to make future merger or acquisitions. A SPAC has no commercial operation and is formed only to raise capital through an initial public offering (IPO).