Carrot equity

Definition:

British slang for an equity investment with the added benefit of an opportunity to purchase more equity if the company reaches certain financial goals.

Investing Essentials


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

Term of the Day

Best-interests-of-creditors test

The requirement that a claim holder voting against a plan of reorganization must receive at least as much as if the debtor were liquidated.

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