SPAC

A SPAC, or Special Purpose Acquisition Company, is a company formed specifically to raise money through an initial public offering (IPO) to later acquire or merge with an existing business. Essentially, it's a shell company that raises funds from investors and then seeks out a private company to bring it into the public markets without going through the traditional IPO process. This allows the private company to become publicly traded more quickly and often with fewer regulatory hurdles. Investors in a SPAC are betting on the management team's ability to identify and successfully acquire a promising company.