Toehold Purchase

外汇网2021-06-19 14:30:24 161

A purchase of less than 5% of a target company's outstanding stock made by an acquiring company.

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.

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