Target company

Definition:

Often used in risk arbitrage. Firm chosen as an attractive takeover candidate by a potential acquirer. The acquirer may buy up to 5% of the target's stock without public disclosure, but it must report all transactions and supply other information to the SEC, the exchange the target company is listed on, and the target company itself once the 5% threshold is hit. See: Raider.

Investing Essentials


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

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Float

Currency: Exchange rate policy that does not limit the range of the market rate. Equities: Number of shares of a corporation that are outstanding and available for trading by the public, excluding... Read More

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