Stub

Definition:

Often used in risk arbitrage. Piece of equity security left over from a major cash or security distribution from a recapitalization.

Investing Essentials


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

Term of the Day

Gross profit margin

Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.

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