SPACs Are Booming Again. Here’s How They Work.

SPACs, the speculative investment vehicles that surged in popularity five years ago, are having a revival. SPACs, or special purpose acquisition companies, are shell companies with no underlying business that promise to buy other companies with money raised from investors.

Conceived as a fast path to taking a company public, SPACs are once again attracting prominent backers, including tech investor Chamath Palihapitiya, who became the public face of the industry’s frenzy in 2020 and 2021. President Donald Trump’s eldest sons also have gotten into the SPAC game — the pair are listed as advisers on a SPAC that’s yet to sell shares but is targeting a manufacturer that will reinforce “America’s economic foundation.”