A SPAC is typically a shell company created for the purpose of acquiring a private company (the de-SPAC transaction) within a certain timeframe (typically 18-24 months). A SPAC is organized and managed by a sponsor investor and typically conducts a firm commitment underwritten IPO of redeemable shares and warrants. Following the IPO, the SPAC usually places most or all of the proceeds in a trust or escrow account to fund the de-SPAC transaction, and the SPAC's shares and warrants are registered and begin trading on a national securities exchange.