Triggering Event

Triggering Event

1. A milestone that a person must attain to become eligible for a benefit or annuity. Usually the triggering event is retirement, but it could be reaching a chronological age, such as 65.

2. A movement in a security's price that causes an investor to become interested in trading that security. For example. if a stock were trading at $70, and the price moves to $75, a shareholder may become interested in selling his/her shares.

3. An event that changes the terms of an agreement or contract. For example, a student loan may include a provision forgiving the debt if the student to whom it is loaned dies. In this case, the triggering event is the student's death. See also: Act of God.
References in periodicals archive ?
In a cross purchase agreement the partners agree that upon a triggering event the continuing partner will acquire the withdrawing partner's interest in the company.
Intangibles that are amortized must be tested if there is an adverse triggering event.
This agreement generally provides that if there is a triggering event during the 15-year period following the year in which the DCL was incurred (certification period), the taxpayer must recapture and report as income the amount of the DCL, and pay an interest charge.
Plan together now so everyone knows what ownership steps kick in when a triggering event happens.
Make sure the valuation provisions don't provide an incentive for them to cause a triggering event and be bought out (see "Warning: Don't Give Shareholders an Incentive to Sell," page 38).
I saw statistics stating that almost 33% of gay and lesbian teenagers [in Massachusetts] had attempted suicide, and that was the triggering event.
transferor corporation, the transferee foreign corporation or the transferred corporation do not squarely fit within the triggering event exceptions.
Prior to the amendment, the Company's rights agreement provided that any person could own up to 15 percent of the Company's outstanding common stock before any Triggering Event would occur.
The base fee and coupon fee varies, depending upon the product category involved, and whether the triggering event is a purchase of the manufacturer's product, the purchase of a competitor's product, or the purchase of a product which is complimentary to that produced by the manufacturer-client.
Also very important are provisions on the rights and timing of distributions before liquidation, noncash distributions and distributions after a triggering event (such as a sale of assets).
1503-2(g)(2)(iii)(A), a (g)(2)(i) agreement provides that if there is a triggering event during the 15-year period following the year in which the DCL occurs (the certification period), the DCL must be recaptured in income, and there is an interest charge on the deferral.