special purpose acquisition company (SPAC)

Definition

A company formed to raise money to acquire an existing privately owned company. SPACs raise money from investors interested in owning shares in an unspecified private company, usually in a targeted industry. If the SPAC is successful in taking over the company, the investors will receive a specified number of shares. If the SPAC is not successful, the funds raised will be returned to the investors.

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special purchase and resale agreement (SPRA) special purpose entity