Commonly used acronym for the term special purpose acquisition company. SPACs used to be called "blank-check companies" because they raise money to acquire a company not publicly identified. SPACs have become a different way for private companies to access the public capital markets and become publicly traded. A merger with a SPAC is an alternative to an initial public offering (IPO) or direct listing.

For details about SPACs, see explanations from the law firms Fenwick & West (SPACs 101 FAQ: A Primer on Today’s Hottest Exit Strategy) and Bingham Osborn & Scarborough (Going Public With SPACs).