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Buy-out
In finance, a buyout is an investment transaction by which the ownership equity of a company (law), company, or a majority share of the stock of the company is acquired. The acquiror thereby "buys out" the present equity holders of the target company. A buyout will often include the purchasing of the target company's outstanding debt, which is referred to as "assumed debt" by the purchaser. Non-finance usage The term may apply more generally to the purchase by one party of all of the rights of another party with respect to an ongoing transaction between the two. For example: *An employer may "buy out" an employee's contract by making a single prepayment, so as to have no ongoing obligation to employ the person; *A landlord may buy out the remainder of a tenant's lease, effectively paying them to vacate. *A government may buy out homes in a floodplain or other area subject to hazard. The language used by Federal Emergency Management Agency, FEMA, a United States agency, is "acquisi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Free Agent
In professional sports, a free agent is a player who is eligible to sign with other clubs or franchises; i.e., not under contract to any specific team. The term is also used in reference to a player who is under contract at present but who is allowed to solicit offers from other teams. In some circumstances, the free agent's options are limited by league rules. Types Terms Unrestricted free agent Unrestricted free agents are players without a team. They have either been released from their club, had the term of their contract expire without a renewal, or were not chosen in a league's draft of amateur players. These people, generally speaking, are free to entertain offers from all other teams in the player's most recent league and elsewhere and to decide with whom to sign a contract. Players who have been bought out of league standard contracts may have restrictions within that league, such as not being able to sign with the buy-out club for a period of time in the NHL, b ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Management Buyout
A management buyout (MBO) is a form of acquisition in which a company's existing managers acquire a large part, or all, of the company, whether from a parent company or individual. Management-, and/or leveraged buyout became noted phenomena of 1980s business economics. These so-called MBOs originated in the US, spreading first to the UK and then throughout the rest of Europe. The venture capital industry has played a crucial role in the development of buyouts in Europe, especially in smaller deals in the UK, the Netherlands, and France. Overview Management buyouts are similar in all major legal aspects to any other acquisition of a company. The particular nature of the MBO lies in the position of the buyers as managers of the company and the practical consequences that follow from that. In particular, the due diligence process is likely to be limited as the buyers already have full knowledge of the company available to them. The seller is also unlikely to give any but the most ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment
Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is to generate a return from the invested asset. The return may consist of a gain (profit) or a loss realized from the sale of a property or an investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, or rental income, or a combination of capital gain and income. The return may also include currency gains or losses due to changes in the foreign currency exchange rates. Investors generally expect higher returns from riskier investments. When a low-risk investment is made, the return is also generally low. Similarly, high risk comes with a chance of high losses. Investors, particularly novices, are often advised to diversify their portfolio. Diversification has the statistical effec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ownership Equity
In finance, equity is ownership of assets that may have debts or other liabilities attached to them. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets. For example, if someone owns a car worth $24,000 and owes $10,000 on the loan used to buy the car, the difference of $14,000 is equity. Equity can apply to a single asset, such as a car or house, or to an entire business. A business that needs to start up or expand its operations can sell its equity in order to raise cash that does not have to be repaid on a set schedule. In government finance or other non-profit settings, equity is known as "net position" or "net assets". Origins The term "equity" describes this type of ownership in English because it was regulated through the system of equity law that developed in England during the Late Middle Ages to meet the growing demands of commercial activity. While the older common law courts dealt with questions of property title, equit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Company (law)
A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared goals. Companies take various forms, such as: * voluntary associations, which may include nonprofit organizations * business entities, whose aim is generating profit * financial entities and banks * programs or educational institutions A company can be created as a legal person so that the company itself has limited liability as members perform or fail to discharge their duty according to the publicly declared incorporation, or published policy. When a company closes, it may need to be liquidated to avoid further legal obligations. Companies may associate and collectively register themselves as new companies; the resulting entities are often known as corporate groups. Meanings and definitions A company can be defined as an "artificial per ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company is divided, or these shares considered together" "When a company issues shares or stocks ''especially AmE'', it makes them available for people to buy for the first time." (Especially in American English, the word "stocks" is also used to refer to shares.) A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets (after discharge of all senior claims such as secured and unsecured debt), or voting power, often dividing these up in proportion to the amount of money each stockholder has invested. Not all stock is necessarily equal, as certain classe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Floodplain
A floodplain or flood plain or bottomlands is an area of land adjacent to a river which stretches from the banks of its channel to the base of the enclosing valley walls, and which experiences flooding during periods of high discharge.Goudie, A. S., 2004, ''Encyclopedia of Geomorphology'', vol. 1. Routledge, New York. The soils usually consist of clays, silts, sands, and gravels deposited during floods. Because the regular flooding of floodplains can deposit nutrients and water, floodplains frequently have high soil fertility; some important agricultural regions, such as the Mississippi river basin and the Nile, rely heavily on the flood plains. Agricultural regions as well as urban areas have developed near or on floodplains to take advantage of the rich soil and fresh water. However, the risk of flooding has led to increasing efforts to control flooding. Formation Most floodplains are formed by deposition on the inside of river meanders and by overbank flow. Whereve ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Federal Emergency Management Agency
The Federal Emergency Management Agency (FEMA) is an agency of the United States Department of Homeland Security (DHS), initially created under President Jimmy Carter by Presidential Reorganization Plan No. 3 of 1978 and implemented by two Executive Orders on April 1, 1979. The agency's primary purpose is to coordinate the response to a disaster that has occurred in the United States and that overwhelms the resources of local and state authorities. The governor of the state in which the disaster occurs must declare a state of emergency and formally request from the President that FEMA and the federal government respond to the disaster. The only exception to the state's gubernatorial declaration requirement occurs when an emergency or disaster takes place on federal property or to a federal asset—for example, the 1995 bombing of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma, or the Space Shuttle ''Columbia'' in the 2003 return-flight disaster. While on-th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Major League Baseball
Major League Baseball (MLB) is a professional baseball organization and the oldest major professional sports league in the world. MLB is composed of 30 total teams, divided equally between the National League (NL) and the American League (AL), with 29 in the United States and 1 in Canada. The NL and AL were formed in 1876 and 1901, respectively. Beginning in 1903, the two leagues signed the National Agreement and cooperated but remained legally separate entities until 2000, when they merged into a single organization led by the Commissioner of Baseball. MLB is headquartered in Midtown Manhattan. It is also included as one of the major professional sports leagues in the United States and Canada. Baseball's first all-professional team, the Cincinnati Red Stockings, was founded in 1869. Before that, some teams had secretly paid certain players. The first few decades of professional baseball were characterized by rivalries between leagues and by players who often jumped from one te ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Buyout Clause
A buyout clause or release clause refers to a clause in a contract that imposes an obligation on another organisation wishing to acquire the services of the employee under contract to pay the (usually substantial) fee of the clause to the organisation which issued the contract and currently employs the employee. It is most commonly used in reference to sports teams, where a transfer fee is usually paid for a player under contract; however, the current owning club is not obliged to sell their player, and if an agreement on a suitable fee cannot be reached, the buying club can instead resort to paying the player's buyout fee – should their contract have such a clause – which the owning club cannot block. Buyout clauses are usually set at a higher amount than the player's expected market value. However, on occasion, a player at a smaller club will sign a contract but insist on a low buyout fee to attract bigger clubs if their performances generate interest, which ''de facto'' functi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Employee Buyout
Employee stock ownership, or employee share ownership, is where a company's employees own shares in that company (or in the parent company of a group of companies). US employees typically acquire shares through a share option plan. In the UK, Employee Share Purchase Plans are common, wherein deductions are made from an employee's salary to purchase shares over time. In Australia it is common to have all employee plans that provide employees with $1,000 worth of shares on a tax free basis. Such plans may be selective or all-employee plans. Selective plans are typically only made available to senior executives. All-employee plans offer participation to all employees (subject to certain qualifying conditions such as a minimum length of service). Most corporations use stock ownership plans as a form of an employee benefit. Plans in public companies generally limit the total number or the percentage of the company's stock that may be acquired by employees under a plan. Compared with ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Leveraged Buyout
A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money (leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company. The use of debt, which normally has a lower cost of capital than equity, serves to reduce the overall cost of financing the acquisition. The cost of debt is lower because interest payments often reduce corporate income tax liability, whereas dividend payments normally do not. This reduced cost of financing allows greater gains to accrue to the equity, and, as a result, the debt serves as a lever to increase the returns to the equity. The term LBO is usually employed when a financial sponsor acquires a company. However, many corporate transactions are partially funded by bank debt, thus effectively also representing an LBO. LBOs can have many different forms such as management buyout (MBO), ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
