What is a blind pool?

As a form of partnership with limited in the past, the blind fund is an arrangement that allows the creation of a public society that is not limited to only one purpose. Each investor in the company is considered a general partner and can freely perform other business interests and is expected to open diversification in terms of the investment carried out by the company.

One of the benefits of the blind fund is that it allows a group of investors to join to create a corporate entity that can actively seek opportunities that will lead to a profit for all partners. While the blind fund does not connect around a central investment or product, there are many examples of public companies that have developed one key good or service over time. Later, the blind fund would add new goods or services to the list of products offered, while other products have some second -grade to the main offer. In other cases, the blind fund would include eclectic selection of products thatThey sell under the auspices of one society, but cultivate profits in different markets.

over the decade of 80. This process would often include the backward division of shares to check the partners involved in the blind fund. The division would be followed by the release of new shares of shares that could be purchased and used to obtain a control share in a new public company. While this process seemed to be a feasible approach on paper, real practice could often lead to the partners to lose money for surgery. As a result, the blind fund is discouraged as an investment strategy in many countries around the world. In the United States, the Securities and Exchange Commission now actively actively against the use of blind pools as a means of a private company.