Cash shell

A cash shell is a company that does not quite meet the definition of a shell company, but whose main value nonetheless lies in its listing rather than its assets or its business.

Cash shells may be literally just that: a shell company with a bit of cash or investments added.

More commonly, shell companies have a rump of their former business. The normal fate of these businesses is to be sold once the shell successfully completes a reverse takeover.

As with shells, some exchanges dislike having too many listed cash shells, and may make it difficult or impossible for their listing to be maintained indefinitely.

Copyright Graeme Pietersz © 2005-2020