LEVERAGED RECAPITALIZATION
A corporate strategy by which a company will borrow a significant sum of money. Using the borrowed fund, the company will pay a large cash dividend to existing shareholders and/or repurchase own stock shares, making the firm less attractive to hostile takeover target. This strategy usually involves selling the equity and borrowing or refinancing the debt.
This leads to asset and/or liability restructuring, where the firm’s liabilities are increased and equity is decreased. In mergers and acquisitions, these are often called shark repellents, since these are designed to fend off unwanted takeover attempts. Also known as leveraged recap.
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Piotroski Score
A discrete score between 0-9 which reflects nine criteria used to determine the strength of a firm's financial position. The Piotroski score is ...
Jitney
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Hedge
A strategy used to protect an investment against loss. A hedge often consists of taking an offsetting position in a related security, such as a fut ...
Preference Shares
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Channel Check
Independent stock analysis on a firm based on the information given to third parties. These are most frequently conducted through conversations or ...
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