A SPAC (Special Purpose Acquisition Company) is a company created solely for the purpose of raising capital through an initial public offering (IPO) with the intention of later merging with or acquiring an existing private company. A SPAC does not have its own business operations or products; it serves solely as a vehicle for raising funds and bringing a target company public. SPACs are often referred to as "blank check" companies because their only asset is the capital raised from investors. For target companies, merging with a SPAC can be a faster and simpler way to become publicly traded.