Spaceman (Spacemen)


Spaceman is an entity specifically created to assist in tax evasion. Popular in Russia in 2000s. Spacemen are typically registered in the names of people who have lost identification. They are special purpose vehicles that do not perform any real activities and pay zero or minimal tax. They are called "space"men because they exist for a very for a short period of time (usually 6 months to 2 years) and then disappear (into space). This type of firm is also called a "dump," "flash-light," "bruise," and "hedgehog."

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Irrational call option

The implied call imbedded in a MBS. Irrational because the call is sometimes not exercised when it is in the money (interest rates are below the threshold to refinance), and sometimes exercised when... Read More

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