Toehold Purchase
A purchase of less than 5% of a target company's outstanding stock made by an acquiring company. Investopedia Says:
Companies are free to purchase up to less than 5% of any company. But once a company purchases 5% or more of another company, the acquirer must file with the SEC and explain to the target firm in writing the reason for the purchase of 5% or more of its stock. Related Terms:
Acquisition
Hostile Takeover
Takeover |