Blank Check Preferred Stock
Preferred stock that has been authorized in the charter of a corporation and is unissued, if the Board of Directors can designate its terms, rights, privileges, preferences, and limitations.
Before the preferred stock can be issued or sold to investors, the terms, rights and privileges of the preferred stock must be designated. Thus, shares of an authorized blank check preferred stock (if and to the extent authorized by the corporation's charter) may be designated, issued, and sold pursuant to board of directors' action with no requirement or need for further stockholder vote or approval. See also Certificate of Designation.