Reverse takeover

Definition:

1) A smaller company taking over a larger company.
2) Merger of the acquiring company into the target company (often to gain a public listing).
Also see Acquisiton, Reverse shell merger.

Investing Essentials


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

Term of the Day

Liquid

In context of securities, easily traded or converted to cash. In context of a corporation, the state of having enough cash and cash equivalents to cover short-term obligations.

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