Special Purpose Acquisition Company (SPAC)
Content
Definition
A Special Purpose Acquisition Company (SPAC) is a publicly-traded company created specifically to acquire or merge with an existing company, facilitating that company`s transition to a public entity without a traditional IPO.
Usage and Context
A special purpose acquisition company (SPAC) is a publicly traded entity created to buy or merge with an existing company.
Frequently asked questions
- What is the difference between a SPAC and an IPO? A SPAC raises capital through an IPO specifically to acquire another company, while a traditional IPO is a direct public offering of a company`s shares to raise capital.
- What is a SPAC explained? A SPAC (Special Purpose Acquisition Company) is a company formed to raise capital via an IPO with the intention of merging with an existing private company to take it public.
- What is SPACs quizlet? SPACs, or Special Purpose Acquisition Companies, are firms that raise money through an IPO specifically to acquire or merge with existing companies.
Benefits
A special purpose acquisition company (SPAC) is created to merge with a private company, allowing it to go public.
Conclusion
A SPAC is a public company formed to acquire or merge with another business.
