A SPAC is basically a vampire company that is publicly traded, but which has no operating business. Its sole purpose is to merge with another company, usually a

A SPAC is basically a vampire company that is publicly traded, but which has no operating business. Its sole purpose is to merge with another company, usually a private company, by expending its founding capital to buy the target. After the merger, the private company is now public - it trades on an exchange, has to file 10K’s, has to abide by Sarbanes-Oxley, etc. It’s a mechanism to take a private company public without an IPO. That’s all.