Special Purpose Acquisition Company

Acronym

SPAC

A special purpose acquisition company is formed strictly to raise capital through an initial public offering in an effort to acquire an existing company. Also called a "blank check company," a SPAC has no commercial operations. It must complete an acquisition within two years. Otherwise, a SPAC must return its funds to investors. Investors can range from the general public to prominent private equity funds.

Terms

Entities

People

Publications

	Blank Check Speculator
	Empire SPAC Investor

In 2020, more than 50 SPACs have been formed in the U.S., as of the beginning of August, raising some $21.5 billion.
The significant increase in SPACs is yet another sign of the intense speculative nature of investors in today’s financial markets.

Entity Types