SPACs

A SPAC (Special Purpose Acquisition Company) is a company formed specifically to raise capital through an initial public offering (IPO) with the goal of acquiring or merging with an existing private company. Essentially, it's a "shell" company that doesn't produce goods or services itself but is used as a vehicle for another company's public listing. Investors buy shares in the SPAC, betting on its management's ability to find a good acquisition. Once a target is identified and acquired, the private company becomes publicly traded without going through the traditional IPO process.