Best-interests-of-creditors test
The requirement that a claim holder voting against a plan of reorganization must receive at least as much as he would have if the debtor were liquidated. |
Similar financial terms
Stress testingTesting of the impact of extreme market movements on the value of a portfolio.
Acid-test ratio
Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.
Tick-test rules
SEC-imposed restrictions on when a short sale may be executed, intended to prevent investors from destabilizing the price of a stock when the market price is falling. A short sale can be made only when either (a) the sale price of the particular stock is higher than the last trade price (referred to as an uptick trade) or (b) if there is no change in the last trade price of the particular stock, the previous trade price must be higher than the trade price that preceded it (referred to as a zero ...
Proxy contest
A battle for the control of a firm in which the dissident group seeks, from the firm's other shareholders, the right to vote those shareholder's shares in favor of the dissident group's slate of directors. Also called proxy fight.
Kaldor-Hicks test
A change in production or distribution is desirable only if those who gain can compensate those who lose, and still be better off.
