blank check company

Blank check companies are shell companies that are usually set up to go public, raise funds, and then buy a private company. 

Considered legal, there are however state securities laws, known as blue sky laws, that set standards for disclosing information and registering securities with the goal of protecting investors against fraud.

SPACs, short for Special Purpose Acquisition Companies, are called blank check companies because they are formed without a specific acquisition target in mind.