Blank check offering(redirected from Blank Check Offerings)
Blank check offering
An initial public offering by a company whose business activities are undefined and therefore peculative.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved