SPAC

A special purpose acquisition company (SPAC), also known as a blank check company, is a non-operating publicly-listed company established to raise capital for the purpose of acquiring an existing private company and taking it public. According to the U.S. Securities and Exchange Commission (SEC), "A SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set timeframe. The opportunity usually has yet to be identified." SPACs have existed for decades, but have gained in popularity recently, attracting big-name underwriters and investors.