Often used in risk arbitrage. Accumulation by an acquirer of less than 5% of the shares of a target company. Once 5% is acquired, the acquirer must file with the SEC and other agencies to explain its intentions and notify the acquiree. See: Rule 13d.
Nearby TermsTo be announced (TBA) Tobin's Q Toehold purchase Tokyo Commodity Exchange (TOCOM) Tokyo International Financial Futures Exchange
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University