Categories: Investor Definitions

BLANK CHECK COMPANY

A blank check company is a development stage company that has no specific business plan or purpose or has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person. These companies typically involve speculative investments and often fall within the SEC’s definition of “penny stocks” or are considered “microcap stocks.”

In addition, a blank check company registering for a securities offering may be subject to additional requirements for the protection of investors, including depositing most of the raised funds in an escrow account until an acquisition is agreed to and requiring shareholder approval of any identified acquisition.

A type of blank check company is a “special purpose acquisition company,” or SPAC for short. A SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set timeframe. The opportunity usually has yet to be identified.

Learn More

SEC

Share
Published by
SEC

Recent Posts

GVWR Class List

Federal Highway Administration GVWR Class Identification Find your vehicle's GVWR by decoding the vin. Class…

2 years ago

China CMIIT ID

China CMIIT ID is required for all wireless devices (cellular phones, modems, routers, etc.) imported…

2 years ago

Singapore Radio Type Approval (IMDA)

Singapore Radio Type Approval (IMDA) is a technical specification and compliance process for radio communications…

2 years ago

Waioder Meaning

Waioder Definition is not a meaningful term in any of the languages, and it isn't…

3 years ago

MNPI – Acronym Meaning

MNPI stands for Material Non-Public Information. Material information is accurate information that is not commonly…

3 years ago

Alien

US law defines “the alien” as “anyone who is not a US citizen,” and in…

3 years ago