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Blank-Check Company

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Dictionary Says

Definition of 'Blank-Check Company'

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

Investopedia explains 'Blank-Check Company'

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.

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    Acquisition

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  • Development Stage

    A company that is in a preliminary or early state of its corporate life. A development stage company is characterized by its focus on early-stage business activities, such as research ...
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    • Escrow

      A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or ...
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    • Merger

      The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.
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    • Blank Endorsement

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