Top-ups
Encyclopedia
In business
, a top-up is a variation of a company’s stock repurchase program for common shareholders. Although this buyback reduces voting interest
of its shareholder, the shareholder may subsequently increase its holdings, called a top-up.
For example, if company A holds 20% of voting power, and company B reduces this power to 10%, company A may increase its voting power to 15% within 6 months.
attempt, a target company can use a top-up to increase time for enhancing takeover defenses.
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
, a top-up is a variation of a company’s stock repurchase program for common shareholders. Although this buyback reduces voting interest
Voting interest
Voting interest in business and accounting means the total number of votes entitled to be cast on the issue at the time the determination of voting power is made, excluding a vote which is contingent upon the happening of a condition or event which has not occurred at the time.This notion is...
of its shareholder, the shareholder may subsequently increase its holdings, called a top-up.
For example, if company A holds 20% of voting power, and company B reduces this power to 10%, company A may increase its voting power to 15% within 6 months.
Takeover
In the event of a hostile takeoverTakeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
attempt, a target company can use a top-up to increase time for enhancing takeover defenses.
See also
- EconomicsEconomicsEconomics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
- Mergers and AcquisitionsMergers and acquisitionsMergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
- MicroeconomicsMicroeconomicsMicroeconomics is a branch of economics that studies the behavior of how the individual modern household and firms make decisions to allocate limited resources. Typically, it applies to markets where goods or services are being bought and sold...
- TakeoverTakeoverIn business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
- Industrial organizationIndustrial organizationIndustrial organization is the field of economics that builds on the theory of the firm in examining the structure of, and boundaries between, firms and markets....