What Is Blank Check Stock?
Blank check preferred stock refers to shares of a class of a firm's preferred stock authorized by its board of directors, but without further stockholder action. ... The preferred shares could be given special voting rights or be convertible to common stock, which is useful in a hostile takeover bid defense.
How does blank check preferred stock work?
What is a Blank Check Preferred Stock? Blank check preferred stock refers to the issuance of a class of preferred shares where the board of directors has authority determining voting rights, dividends, and conversion without separate shareholder approval.
Blank Check Preferred Stock Definition & Example
What happens to blank check stocks?
After the blank check company has acquired or merged with a target company, the transaction is publicly announced and the blank check company is converted to the new entity. The company is then listed on stock exchanges under a new ticker symbol.
What is a Blank Check Company? | Woodruff Sawyer
What is a SPAC stock?
A special purpose acquisition company (SPAC) is formed to raise money through an initial public offering (IPO) to buy another company. At the time of their IPOs, SPACs have no existing business operations or even stated targets for acquisition.
Special Purpose Acquisition Company (SPAC) - Investopedia