What is a spac in the stock market?
A special purpose acquisition company (SPAC) is formed to raise money through an initial public offering (IPO) to buy another company
SPAC stands for Special Purpose Acquisition Company. A SPAC has no commercial operations. It is used to raise money on the stock market through an IPO. Once funded it searches for businesses to buy or merges with one. They are also called blank check companies. SPACS raised $80 billion in 2020.