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Breakup Fee

A large amount of money that is usually stipulated in a takeover agreement to be paid by a company to...

Bankrupt Shell Company

A public shell company that has been formed either through issuance of shares following a bankruptcy (these shares are publicly...

Blind Pool

An initial public offering (IPO) in which the issuing company doesn't disclose how it will use the offering proceeds. That...

Broken Initial Public Offering

An initial public offering (IPO) in which the security falls in price (i.e., sells below the IPO price) on the...

Operational Synergy

The efficiency gains or operating economies (synergies) that are attained in horizontal mergers or vertical mergers. It reflects the value...

OTCBB Shell Company

OTCBB stands for over-the-counter bulletin board. An OTCBB public shell is a public shell company that fully reports to the...

Offering Price

The price at which the underwriter of an initial public offering (IPO) offers to sell the new issue to the...

Over-Allotment Option

A provision in an initial public offering (IPO) underwriting agreement which entitles the underwriters to purchase more shares than specified...

Operating Economies

The efficiency gains or synergies that are attained in horizontal mergers or vertical mergers. It reflects the value realized from...

Corner Portfolio

A portfolio where a security either enters or leaves the efficient set. In other words, it consists of all securities...