What is a SPAC?

A Special Purpose Acquisition Company (SPAC), also known as a blank check company, is a company formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring (or merging with) one or more existing private companies. SPACs generally have 18-24 months to complete a business combination. SPAC IPO proceeds are placed in an interest -bearing account, or trust and are simply invested in U.S. government securities (T-Bills), money market securities, and cash until a business combination is completed.