The SPAC, or special purpose acquisition company, is the most recent IPO craze to hit Wall Street. Many reputable companies are going public via this route, with over 200 SPACs in 2020 alone. SPACs have existed since the early 2000s, but they have recently enjoyed a resurgence in popularity. And with many more slated for 2021, that surge shows no signs of slowing down.

So what is a SPAC? What would make some companies pick a SPAC over an IPO? And why are investors lining up to jump on the trend? On this installment from our "dot.LA Explains" series, host Kelly O'Grady runs through what you need to know.