What is SPAC?
Let's find out SPAC meaning, definition in crypto, what is SPAC, and all other detailed facts.
SPAC stands for special purpose acquisition company and it is a company that has the goal of raising money through an initial public offering (IPO) or through merging with a company that already exists. SPACs are non-commercial entities that are often founded by a group of investors (or sponsors) with the goal of pursuing deals in a specific industry.
The money raised in an IPO by SPACs is placed in an interest-bearing trust account and cannot be distributed unless the SPAC completes an acquisition or returns the money to investors if it is liquidated. They serve as a link between the general public and enterprises that have difficulty obtaining cash.
SPACs are a preferred way for companies to go public without the hassles of a typical IPO or an initial coin offering (ICO), and without the substantial market presence that direct listings require. SPACs are more convenient and faster because, rather than the night before as it is with typical IPOs, corporations acquire assurances from investors early on at an agreed price.