HomeFinancial Glossary › SPAC (Special Purpose Acquisition Company)

SPAC (Special Purpose Acquisition Company)

Investing
A shell company that raises money through an IPO to acquire an existing private company, taking it public.

Example

Example: Consider an investor building a $100,000 portfolio. SPAC (Special Purpose Acquisition Company) — a shell company that raises money through an ipo to acquire an existing private company, — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.

Related Terms

← Back to Financial Glossary