You’ve probably heard or seen the acronym “SPAC” floating around in the last couple of months. It’s a craze that’s taken Wall Street by storm.
SPACs are special purpose acquisition companies, essentially shell companies that raise money from investors through stock-market listings. After going public themselves, they look for private companies to buy. Such transactions make those private companies public without having to go through the traditional initial public stock offering process, which involves “roadshows” to drum up investor interest and an intense media spotlight.
