contingent value right
Also found in: Acronyms.
Contingent Value Right
A right attached to a stock entitling the holder to the difference between the share price and some stated amount of money should the share price not exceed that amount in a given period of time. CVRs are most often attached to stocks after a merger or acquisition to encourage shareholders not to sell, and to give the new situation a chance to become profitable.
contingent value right (CVR)
The right to a cash payment if the average price of an underlying security fails to reach a specified level by a certain date. The size of the payment to the owner of the right depends on the difference between the specified and actual prices. The CVR expires without value if the actual price of the underlying security exceeds the specified price.