shell company

Definitions

Accounting

  • noun a company that has ceased to trade but is still registered, especially one sold to enable the buyer to begin trading without having to set up a new company

Economics

  • noun a company which does not trade, but exists only as a name with a quotation of the Stock Exchange. Shell companies are bought by private companies as a means of obtaining a quotation on the stock exchange without having to go through a flotation.
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