James Chen, CMT is an expert trader, investment adviser, and global market strategist
He has authored books on technical analysis and foreign exchange trading published by John Wiley and Sons and served as a guest expert on CNBC, BloombergTV, Forbes, and Reuters among other financial media.
Skylar Clarine is a fact-checker and expert in personal finance with payday loans California a range of experience including veterinary technology and film studies.
What Is a Blind Pool?
A blind pool, also known as «blank check underwriting» or a «blank check offering,» is a direct participation program or limited partnership that lacks a stated investment goal for the funds that are raised from investors.
Key Takeaways
- Blind pools are investment vehicles that put very few restrictions on what and how they can invest and can be challenging to evaluate even for sophisticated investors.
- Blind pools, also known as «blank check underwriting» or a «blank check offering,» gained a poor reputation over time as some people abused the freedom to fleece investors.
- A potential use for a blind pool vehicle is to provide funding for the acquisition of private companies to take them public outside of the traditional regulations and registration process.
Understanding a Blind Pool
In a blind pool, money is raised from investors, usually based on the name recognition of a particular individual or firm. Read more