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A SPAC, or special purpose acquisition company, is another name for a "blank check company," meaning an entity with no commercial operations that completes an initial public offering (IPO). After becoming a public company, the SPAC then acquires, or usually merges with, an existing private company, taking it public.

SPACs raise money from stock-market investors for the explicit purpose of buying unspecified privately traded companies. (Shareholders in blank-check funds don't have a say on picking deals.) The targets essentially assume the SPAC listing, transforming them into public companies.

A special purpose acquisition company (SPAC) is a corporation formed for the sole purpose of raising investment capital through an initial public offering (IPO)When the SPAC raises the required funds through an IPO, the money is held in a trust until a predetermined period elapses or the desired acquisition is made.

In effect, the "special purpose" of a SPAC is to bring a promising private company to the public investment market. Although SPAC strategies can be complicated, they tend to take less time to complete than traditional IPO listings and can be cheaper.

SPACs raise money from stock-market investors for the explicit purpose of buying unspecified privately traded companies. (Shareholders in blank-check funds don't have a say on picking deals.) The targets essentially assume the SPAC listing, transforming them into public companies.

A special purpose acquisition company, or SPAC, is essentially a shell company. Sometimes a SPAC is called a blank-check company because it doesn't have any actual operations. Instead, the company is created for the purpose of taking a private company public.

Basically, SPACs are money looking for a promising private company to invest in. A successful acquisition validates the SPAC's existence and allows the private company to be publicly traded when listed on the stock exchange under the SPAC's symbol, also known as a ticker.