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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 very small companies
typically involve speculative investments and often fall within the
SEC’s definition of "penny stocks" or are considered "microcap stocks."
Because of the nature of blank check companies, the SEC does not
allow them to use some of the exemptions from the registration
requirements when selling their securities.
Basically you'll either (a) develop a business plan and execute it like a "regular" company, or (b) acquire or merge with a "regular" company. I'm guessing your question was seeking something a little more in-depth, but I'm not sure what -- so perhaps you can provide more info . . .1 of 1 people found this helpful