Parking violation(redirected from Notice of illegal parking)
Often used in risk arbitrage. Illegal holding of stock by a third party, or the financing of such a stock, in which the third party's sole reason for holding the stock is to conceal ownership or control of a raider, thus sidestepping the Williams Act requirements of 5% holding limits. See: Rule 13d.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The act of illegally holding or financing stock on behalf of another party with the intent to conceal that party's ownership. Parking violations occur when an investor would otherwise own more that 5% of shares outstanding, which would require him/her to register certain information with the SEC. Parking violations usually occur when a corporate raider wishes to conceal his/her intent to acquire a company and enlists another's help in doing so by asking him/her to hold or finance a certain amount of stock. See also: Williams Act.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved