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Special Purpose Acquisition Company (SPAC)

SPAC stands for Special Purpose Acquisition Company, a shell company formed to raise capital through an initial public offering (IPO) with the intent to acquire or merge with a private company, thereby allowing that company to become publicly traded.

Example: In 2021, a SPAC raised capital through an IPO and later announced a de-SPAC merger with a private software company, enabling that company to become publicly traded.

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