A special purpose acquisition company ( SPAC ; / s p æ k / ), also known as a " blank check company " is a shell corporation listed on a stock exchange with the purpose of acquiring a private company , thus making it public without going through the traditional initial public offering process. According to the U.S. Securities and Exchange Commission (SEC) , "A SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set timeframe. The opportunity usually has yet to be identified". SPACs raised a record $82 billion in 2020, a period sometimes referred to as the "blank check boom".