SPACs or special purpose acquisition companies, are publicly-traded investment vehicles whose goal is to acquire or merge with a company from the proceeds of its own IPO, sometimes called a reverse merger.
SPACs are often focused on acquiring a business in a specific industry, like a tech firm or green energy business.
It’s important to remember that, unless it has performed a reverse merger, a SPAC is not like a traditional company. They have no business to run, they’re purely there to try and invest in another business and merge with it.
Learn more: Detailed guide on SPACs