| Click on the Glossary/Terminology for detail |
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Acquirer |
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| Any individual/company/any other legal entity, which intends to acquire or acquires substantial quantity of shares or voting rights of target company or acquires or agrees to acquire control over the target company along with the persons acting in concert. | | | |
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American Depository Receipts (ADR) (U.S.) |
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| A certificate issued in the United States in lieu of a foreign security. The original securities are lodged in Bank/Custodian abroad, and the American Depository Receipts (ADRs) are traded in the US for all intents and purposes as if they were a domestic stock. An ADR dividend is paid in US dollars, so it provides a way for American investors to buy foreign securities without having to go abroad, and without having to switch in and out of foreign currencies. | | | |
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Bonus Shares |
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| Shares issued by companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years. | | | |
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Chinese Walls |
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| Artificial barriers to the flow of information set up in large firms to prevent the movement of sensitive information between departments. | | | |
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Coercive Tender Offer |
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| A tender offer that exerts pressure on target shareholders to tender early. This pressure may come in the form of preferential compensation for early tendering shareholders. Changes in securities laws have limited the effectiveness of such tender offers. | | | |
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Competitive Bid |
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| An offer made by a person other than the acquirer who has made the first public announcement. | | | |
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Continuous disclosure |
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| Procedure where certain companies are required to make disclosures on a continuing basis of their business activities by filing documents. | | | |
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Control of management |
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| The right to appoint directly or indirectly or by virtue of agreements or in any other manner majority of directors on the Board of the target company or to control management or policy decisions affecting the target company | | | |
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Controlling interest |
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| Holding a sufficiently large number of shares in a company so as to be able to control its prices. | | | |
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Corporate raiders |
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| A cash rich person who may either by himself or through the company he controls buys in very large numbers of equity shares of a target company with a view to taking over that company. | | | |
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Corporate restructuring |
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| Involves making radical changes in the composition of the businesses in the company’s portfolio. | | | |
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Cumulative Convertible Preference Shares |
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| A type of preference shares where the dividend payable on the same accumulates, if not paid. After a specified date, these shares will be converted into equity capital of the company. | | | |
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Cumulative Preference Shares |
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| A type of preference shares on which dividend accumulates if not paid. All arrears of preference dividend have to be paid out before paying dividend on equity shares. | | | |
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Disclosure |
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| Full and material information given by a company that may allow an investor to take an informed investment decision | | | |
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Equity |
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| The ownership interest in a company of holders of its common and preferred stock. | | | |
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Escrow account |
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| The trust account established by a broker under the provisions of the license law for the purpose of holding funds on behalf of the broker’s principal or some other person until the consummation or termination of a transaction | | | |
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Global Depository Receipts |
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| Any instrument in the form of a depository receipt or certificate (by whatever name it is called) created by the Overseas Depository Bank outside India and issued to non-resident investors against the issue of ordinary shares or Foreign Currency Convertible Bonds of issuing company. | | | |
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Golden Parachute (U.S.) |
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| A generous compensation contract awarded by the management to themselves in the anticipation of a takeover. | | | |
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Grave dancer |
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| An acquirer who searches for bargains often among companies in dire financial straits or in bankruptcy. | | | |
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Grey Knight |
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| One who offers to buy shares of the bidding company as an aid to the defence. | | | |
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