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Corporate Actions

SPAC (Special Purpose Acquisition Company)

A "blank check" shell company that raises money via IPO to later acquire a private company.

In depth

Sponsor identifies target within 24 months. SPAC mania peaked 2020-21; subsequent collapse left many post-merger companies trading well below SPAC IPO price. Provides faster public-market path than traditional IPO but with worse historical returns for investors.

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