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."

Investing Essentials


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

Term of the Day

Exact matching

A bond portfolio management strategy that involves finding the lowest cost portfolio generating cash inflows exactly equal to cash outflows that are being financed by investment.

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