Often used in risk arbitrage. Firm chosen as an attractive takeover candidate by a potential acquirer. The acquirer may buy up to 5% of the target`s stock without public disclosure, but it must report all transactions and supply other information to the SEC, the exchange the target company is listed on, and the target company itself once the 5% thr...
Optimal amount of cash for a firm to hold, considering the trade-off between the opportunity costs o
A company that another company or organisation wants to acquire
[n] - a company that has been chosen as attractive for takeover by a potential acquirer
takeover target noun a company that has been chosen as attractive for takeover by a potential acquirer