Blank check offering

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Blank check offering

An initial public offering by a company whose business activities are undefined and therefore peculative.

Blank Check Offering

An initial public offering made by a company that has not yet defined its business operations. Black check offerings are usually penny stocks; the funds raised through a blank check offering must usually be placed in an escrow account until certain conditions have been met. Because a blank check company has not begun, or even defined, its operations, it effectively asks investors to trust it. Blank check offerings are therefore subject to extra regulation to protect these investors from the possibility that the company is a fraud. In any event, investing in a blank check offering is always speculative. See also: Rule 419.
References in periodicals archive ?
The crowdfunding exemption is not available to certain types of issuers: blind pool and blank check offerings; investment companies; hedge funds, commodity pools, and similar investment vehicles; and businesses involving oil and gas exploration or production, mining or other extractive industries.
* Prohibit the Division from accepting the registration of securities for companies that have no business plan (known as "blank check offerings").