Overhang
Definition
Used in the context of general equities. Sizable block of securities or commodities contracts that, if released on the market, would put downward pressure on prices; prohibits buying activity that would otherwise translate into upward price movement. Examples include shares held in a dealer's inventory, a large institutional holding, a secondary distribution still in registration, and a large commodity position about to be liquidated.
Investing Essentials
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Getting Started In Stocks
Investopedia
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The NASDAQ Dozen
Learning Markets
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The 10 Commandments Of Investing
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The Lowdown On Penny Stocks
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10 Things To consider Before Selecting An Online Broker
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Start Investing With Only $1,000
Investopedia
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University
Term of the Day
Covenant defeasance
Covenant defeasance allows the issuer to remove the bond's covenants by placing the remaining payments with a trustee in escrow to be paid out on schedule.
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