Contingent value rights

Contingent value rights

A Contingent Value Rights (CVR) is a type of option that can be issued by the buyer of a company to the sellers. It specifies an event, which, if triggered, lets the sellers acquire more shares in the target company.

The New York Times claims[1] it harms both the sellers and the buyers, since it could cause the CVR issuer to make a big payment in case the event is triggered and the underlying stock price is high, or leave the holder of the CVR with worthless shares in case the stock price plunges.

References

  1. ^ Foley, John (2008-12-26). "Ignominious Seven From 2008". The New York Times. http://www.nytimes.com/2008/12/26/business/26views.html. Retrieved 2008-12-27. 

External links

  • [1] - CVR on Investopedia
  • [2] - Contingent Value Rights in Acquisitions: Theory and Empirical Evidence

Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Contingent Value Rights - CVR — A type of right given to shareholders of an acquired company (or a company facing major restructuring) that ensures they receive additional benefit if a specified event occurs. A contingent value right is similar to an option because it often has …   Investment dictionary

  • RIGHTS, HUMAN — The following article deals with the subject of human rights, their essence and the contents of various fundamental rights as reflected in the sources of Jewish Law. The interpretation of Israel s Basic Laws concerning human rights in accordance… …   Encyclopedia of Judaism

  • Contingent Asset — An asset in which the possibility of an economic benefit depends solely upon future events that can t be controlled by the company. Due to the uncertainty of the future events, these assets are not placed on the balance sheet. However, they can… …   Investment dictionary

  • Natural and legal rights — Inalienable redirects here. For the 2008 film, see InAlienable. For the concept of alienation in property law, see Alienation (property law). Rights Theoretical distinctions …   Wikipedia

  • Fathers' rights movement — The Fathers rights movement has been characterized as a civil rights movement,cite news | last =Sacks | first = G | coauthors = Thompson D | title =Why Are There so Many Women in the Fathers Movement? | publisher = Star Tribune | date =2006 06 21 …   Wikipedia

  • Kant’s moral and political philosophy — Don Becker Practical philosophy, for Kant, is concerned with how one ought to act. His first important work in practical philosophy, Foundations of the Metaphysics of Morals, provides Kant’s argument for the fundamental principle of how one ought …   History of philosophy

  • Land Economics (the journal) — Infobox Journal discipline = Economics abbreviation = Land publisher = University of Wisconsin Press country = USA frequency = quarterly history = 1925 present openaccess = website = http://www.wisc.edu/wisconsinpress/journals/journals/le.html… …   Wikipedia

  • Utilitarianism — This article discusses utilitarian ethical theory. For a discussion of John Stuart Mill s book Utilitarianism, see Utilitarianism (book). For the architectural theory, see Utilitarianism (architecture) Part of a series on …   Wikipedia

  • cañada — /keuhn yah deuh, yad euh/, n. Chiefly Western U.S. 1. a dry riverbed. 2. a small, deep canyon. [1840 50; < Sp, equiv. to cañ(a) CANE + ada n. suffix] * * * Canada Introduction Canada Background: A land of vast distances and rich natural resources …   Universalium

  • Canada — /kan euh deuh/, n. a nation in N North America: a member of the Commonwealth of Nations. 29,123,194; 3,690,410 sq. mi. (9,558,160 sq. km). Cap.: Ottawa. * * * Canada Introduction Canada Background: A land of vast distances and rich natural… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”