Spaceman (Spacemen)

Definition:

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."

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

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Irrational call option

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