Oxford Handbook of IPOs, edited by Douglas Cumming and Sofia Johan, 2017, Forthcoming
40 Pages Posted: 17 Jan 2017 Last revised: 21 Feb 2017
Date Written: January 17, 2017
Specified Purpose Acquisition Companies (SPACs) are a special type of public companies currently available to investors in financial markets. As an investment vehicle, modern SPACs are traced back to 18th century England where blank checks were first mentioned as blind pools during the infamous South Sea Bubble. In the United States, the Security and Exchange Commission classifies SPAC as a blank check company. This chapter reviews the academic and financial literatures about SPACS, describes their institutional characteristics and market performance since their Initial Public Offering (IPO). The sole purpose of SPACs is to use the proceeds to finance future acquisition.
Keywords: Blank checks, Initial public offering (IPO), IPO survival, M&A, Specified purpose acquisition companies, SPACs,
JEL Classification: F30, G12, G14, G24, G30, G32, G34
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