blank-check company

blank-check company definition - business

blank-check company

A company that issues stock in order to finance its involvement in establishing a business in which principal operations have not yet commenced. The company either has no business plan, or plans to engage in a merger or acquisition with an unspecified business entity. Essentially, the company is given a blank check with regard to investors' money. Blank-check companies are required to provide certain information prior to and after the registration of securities. Also called special-purpose acquisition company.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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