Special Purpose Acquisition Company (SPAC)
Special Purpose Acquisition Company (SPAC)
SPAC or Special Purpose Acquisition Company, is a business formed with the goal of selling enough shares through IPO and cashing 🪙 in to be able to purchase another company.
Sounds shady? Don't worry, even though SPACs or ‘Blank Check Companies’ can be hush hush about what they want to buy and have no existing business. If they don't end up buying a company, they have to give all the money back to their investors within two years.
SPACs have become a favorite amongst big-time private equity funds and celebs as a way of fast tracking the IPO process too. SPACS are relatively risky investments, especially for new investors.
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