LOCK-UP OPTION
A stock option offer by takeover-target company to a friendly acquirer for additional equity or for purchasing a valuable portion of their firm. Selling the major assets or controlling shares will be attractively priced but freezes these assets or shares so it cannot be sold again until the target company’s approval. Since this scheme may hinder balanced bidding, courts oftentimes reject it except in cases where it encourages greater competition among bidders. This is not regarded as a derivative instrument since its primary essential is the incident of a business combination. Therefore, it is not subject to Financial Accounting Standards Board (FASB) statement 133.
Also called lock-up defense, lock up clause, or lock up provision.
POPULAR TERMS
Acquired Fund Fees And Expenses - AFFE
A line item within a prospectus of a fund-of-funds which displays the underlying funds' operating expenses. This was regarded as a requirement ...
Desk Trader
A trader restricted to instituting trades for the clients of a firm and unable to trade with own accounts of his or her firm.
Trend Analysis
Technical analysis of the stock’s future movement by analyzing the historical data or previous performance. It is based on the idea traders w ...
Nasdaq Intermarket
An electronic marketplace in which the National Association of Securities Dealer (NASD) members may execute trades, communicate, and accept quotati ...
Put To Seller
The exercise of a put option. Put to seller often occurs when the strike price of the put is lower than the underlying security’s market valu ...
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ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 11:00 | Ifo Business Climate Index | Jan | |
| 11:00 | Ifo Current Assessment | Jan | |
| 11:00 | IFO - Expectations | Jan | |
| 15:30 | Durable Goods Orders | Nov | |
| 16:00 | NBB Business Climate | Jan | |
| 01:50 | Corporate Service Price Index | Dec | |
| 02:01 | BRC Shop Price Index | Jan | |
| 02:30 | NAB Business Confidence | Dec | |
| 04:00 | Credit Card Spending | Dec |
