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.