Special Purpose Acquisition Company (SPAC)

A SPAC is a company without business activities and is established to raise funds through an initial public offering (IPO) for the purpose of acquiring all or part of a non-listed company in the relatively near future. A SPAC is also called a "shelf company" or "blank check company" because it is unclear which company it will acquire ahead of time and it has no business activity at the time of the IPO.