A blank check company is a development stage company that has no specific business plan or purpose or has indicated that its business plan is to merge or acquire another company or companies, other entity, or person. These companies typically involve speculative investments and are frequently classified as "penny stocks" or "microcap stocks" by the SEC.

Furthermore, a blank check company that registers for a securities offering may be subject to additional requirements for investor protection, such as depositing the majority of the funds raised in an escrow account until an acquisition is agreed to and requiring shareholder approval of any identified acquisition.