squeeze-out(redirected from Squeezeout)
Also found in: Encyclopedia.
In joint stock companies, to buy the stocks of a minority group of shareholders without their necessary consent. A group of shareholders owning the large majority of the company have the ability to squeeze out remaining shareholders. The percentage of shareholders needed varies between jurisdictions. For example, the United Kingdom requires shareholders owning 90% of the company to consent to squeeze out the other shareholders, while Germany requires 95%. Minority shareholders receive compensation in return for surrendering their shares.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The forcing of stockholders to sell their stock. Majority holders of a company's stock may attempt a squeeze-out of minority stockholders in order to take complete control of the firm.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.