Definition
A SPAC sponsor's discounted founding stake – Shares purchased by a SPAC's sponsor for a nominal amount before its IPO, sized to equal 20% of total shares outstanding immediately after the IPO closes (a near-universal ratio across SPACs, commonly called "the promote"). These convert into the public share class after a Business Combination and usually carry a lock-up, but their value is largely fixed at that 20% stake regardless of which target is chosen or how the eventual merger performs. Found In: Statement of Changes in Shareholders' Equity, Notes to Financial Statements (related-party/equity disclosures)