Shell corporation

Listed company with no significant operations.

A shell corporation is a public company, which has given up its operations and is possibly only managing its assets, or it is bankrupt and already free of debt. Shell corporations serve as a vehicle for an IPO of other companies. This form of the IPO is also called a reverse merger, reverse takeover, Reverse IPO or Back Door Listing. Some shell corporations are subject to lively, highly speculative trading. By doing this, the players involved aim to use a shell corporation to facilitate their own IPO.

Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at We will then include the term if possible.