by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is Preferred Equity Redemption Stock?The Preferred Equity Redemption Stock (PERC) is a type of security that must be converted at maturity. It can be converted to a regular common stock if certain conditions are met. PERCs can also undergo an early redemption at...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is a Letter Of Comment?A letter of comment is a letter that the Securities and Exchange Commission (SEC) sends a company as a response to a request or registration statement filed by a company. Companies and individuals can also send a letter of comment as a...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is a Pathfinder Prospectus?A pathfinder prospectus refers to a preliminary prospectus that contains the statement of the financial status of a company that is going to be launched on an exchange or that will go through an IPO filing. A pathfinder prospectus is...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is a Busted Takeover?A busted takeover is a type of takeover bid in which an acquirer purchases a target company and thereafter sells some of its assets. This takeover is highly leveraged because some of the assets of the purchased company are sold to settle or...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is a People Poison Pill?A people pill is a type of poison pill used by target firms as a defense from hostile takeover bids. When a target company uses a people pill, it issues threats to an acquiring company that its entire team of employees and management team...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is a Bailout Takeover?A bailout takeover is a takeover in which a financially strong firm or the government takes over a weak company to help it regain financial strength. A bailout takeover is often done to help a financially unstable company out of potential...
