TARGET COMPANY


Meaning of TARGET COMPANY in English

Often used in risk arbitrage. Firm that has been chosen as attractive for takeover 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 S.E.C. , the exchange the target company is listed on, and the target company itself once the 5% threshold is hit. See: raider .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.