Parking

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Parking

Putting money into safe investments such as money market investments while deciding where to invest the money.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Parking

1. The act or practice of investing in low risk and/or highly liquid securities while one decides where to invest in the medium and long term. For example, one may park one's money in a Treasury bond, or even a savings account, while one makes these decisions.

2. The act of illegally holding or financing stock on behalf of another party with the intent to conceal that party's ownership. Parking occurs 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 is a method a corporate raider uses when he/she wishes to conceal his/her intent to acquire a company. The raider therefore 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

parking

1. Placing idle funds in a safe, short-term investment while awaiting the availability of other investment opportunities. Many investors end up parking proceeds from a security sale in a money market account while searching for other securities to purchase.
2. Transferring stock positions to another party so that true ownership of the stock will be hidden. For example, an investor involved in the takeover of a company may park securities of the company with other investors so that the management of the target company will not know the extent of the investor's stock ownership. Parking for this purpose is generally illegal.
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.
References in periodicals archive ?
In addition, the AT may have to depreciate certain parked properties even if it acquired and transferred the properties in the same tax year.
* The AT can delegate the operation or management of the parked property (either replacement or relinquished) to the taxpayer under a management or lease agreement.
A reverse-exchange intermediary typically has no interest in managing the parked property and the taxpayer would generally want to use that property.
The accommodator who has borrowed on a nonrecourse basis to acquire parked replacement property may set a maturity date for the loan that ensures his involvement will end at a fixed date (either through completion of the exchange when the relinquished property is sold or through conveyance of the replacement property in foreclosure of the note).