system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: What are SPACs (Special Purpose Acquisition Company) and what do they do?
gpt
When a growing company wants to go public as an IPO, the traditional process requires a lot of disclosures, accounting, paperwork, filings, legal fees etc. as the company readies itself for public stock sale.  This can take a long time and be costly.  

n alternative method is a SPAC.  This kind of company raises money from (usually very well heeled) investors with the goal of short circuiting that process.  The investor money is pooled and a SPAC is formed that does nothing, but announce plans to acquire other companies.  The SPAC then goes public with a very simple IPO (simple because the company does nothing, yet).  Then the SPAC acquires a real company that wants to go public. Now the stock in the SPAC is really just the valuation of the acquired company and the acquired company is for all intents and purposes public,  skipping all of the usual process.