Target firm

Similar financial terms

Targeted repurchase
The firm buys back its own stock from a potential bidder, usually at a substantial premium, to forestall a takeover attempt.

Target zone arrangement
A monetary system under which countries pledge to maintain their exchange rates within a specific margin around agreed-upon, fixed central exchange rates.

Target payout ratio
A firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a certain percentage of earnings, but it pays a stated dollar dividend and adjusts it to the target as base-line increases in earnings occur.

Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the opportunity costs of holding too much cash and the trading costs of holding too little cash.

Target surplus (or Tied Surplus)
The capital that must remain in a life company in order to support the business already on the books. Target surplus is an amount held over and above the reserves and is needed due to the uncertain nature of the level and timing of future insurance claims. This capital may not be used for dividend payouts to shareholders.

Four-firm concentration ratio
The sum of the portions of sales, value added, assets, or employees held by the largest four firms in an industry. A measure of competitiveness according to the structural theory

Confirmation
A confirmation is a written acknowledgment of a trade, listing important details such as the date, the size of the transaction, the price, the spread and commission, and the amount of money involved.

Affirmative covenant
A bond covenant that specifies certain actions the firm must take.

Small-firm effect
The tendency of small firms (in terms of total market capitalization) to outperform the stock market (consisting of both large and small firms).

Neglected firm effect
The tendency of firms that are neglected by security analysts to outperform firms that are the subject of considerable attention.