PrivateTechSharesSPAC
Also called: special purpose acquisition company, blank-check company
In one line
A shell company that raises public money, then merges with a private company to take it public more quickly than an IPO.
In plain English
A SPAC is a cash shell already listed on an exchange. A private company merges into it to become public faster and with more negotiated terms than a traditional IPO.
If you were explaining it to a 5-year-old
An empty shop that's already open for business buys the toy-maker and puts its toys on the shelves — a shortcut to going public.
Why it matters when you sell
If your company goes public via SPAC, lock-ups and share mechanics differ from a normal IPO, affecting when you can sell.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
Primary references for this term: US SEC / Investor.gov. Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.