Some stock market shells have become flourishing real estate companies.
Unquestionably, one of the more fascinating features on the Tel Aviv Stock Exchange (TASE) in 2006 was the entry of new real estate companies by the back door through the acquisition of stock market shells. Some of these companies have built flourishing businesses on this foundation.
This phenomenon has some negative aspects as well, the most noteworthy of which is investors’ rush to invest in a fad, raise capital and invest it in speculative deals at considerable risk. That said, quite a few genuine real estate companies started out as stock market shells.
