Meaning SCORCHED-EARTH POLICY: Often used in risk arbitrage. Any technique a company that has become the target of a takeover attempt uses to make itself unattractive to the acquirer. For example, it may agree to sell off its crown jewels, or schedule all debt to become due immediately after a merger
More terms such as Scorched-earth policy in Dictionary S.
- Definition Sale And Lease-Back:
- Examples Sale of an existing asset to a financial institution that then leases it back to the user. Related: Lease scorched-earth policy definition.
- Definition Stockholder Of Record:
- Examples Stockholder whose name is registered on the books of a corporation and thus will receive dividends from the corporation scorched-earth policy explain.
- Definition Subscription Warrant:
- Examples derivative products. Type of security, usually issued with another security, such as a bond or stock, that entitles the holder to buy a proportionate amount of common stock at a specified price scorched-earth policy what is.
- Definition Scale:
- Examples Payment of different rates of interest on CDs of varying maturities. A bank is said to post a scale. Commercial paper dealers also post scales scorched-earth policy meaning.
- Definition Sold Away:
- Examples Refers to over-the-counter trading. Having sold stock to another dealer before making the present offering scorched-earth policy abbreviation.
