Blank-Check Company

What does it Mean? A company in a developmental stage that either doesn't have an established business plan or has a business plan that revolves around a merger or acquisition with another firm.
Investopedia Says... These companies are generally speculative in nature and will issue penny stock in order to finance future operations.

According the Securities Act of 1933 (under Rule 419), blank-check companies are required to disclose the terms and conditions of their offering as well as place any funds received from the offering into an escrow account.

Terms Related Links

Acquisition
Blank Check Preferred
Development Stage
Escrow
Merger
Penny Stock
Speculation

Terms Related Links
The Lowdown On Penny Stocks - Think penny stocks will make you rich? If you don't understand the risks, you could end up penniless.

The Basics Of Mergers And Acquisitions - Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work.




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