take out

Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.
Related to take out: take out a loan


1. Informal; to borrow.

2. Extra cash that an investor derives when he/she sells a position and then buys a similar position for a lower price.

3. To make a bid for the entirety of a security that a seller owns.

4. Informal for a merger or acquisition. The term comes from another informal term, "in play," which refers to a company either soliciting offers for a buy-out or vulnerable to a hostile takeover. A takeout means that the company involved as been "taken out of play."

take out

1. The extra funds generated in an account when an investor sells one block of securities and buys another block at a lower total cost. For example, a customer may sell $50,000 face amount of bonds at 85 and then purchase $50,000 face amount of a different bond at 80.
2. A bid for a seller's remaining position in a security.