Toehold purchase

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Toehold purchase

Often used in risk arbitrage. Accumulation by an acquirer of less than 5% of the shares of a target company. Once 5% is acquired, the acquirer must file with the SEC and other agencies to explain its intentions and notify the acquiree. See: Rule 13d.

Toehold Purchase

A purchase of less than 5% of the stock of a publicly-traded company. This is called a toehold purchase because one is not required to register and explain one's purchase to the SEC until one meets the 5% threshold. This allows one to begin the process of a potential hostile takeover by accumulating stock quietly, though one eventually would have to disclose one's intent.

toehold purchase

The purchase of less than 5% of the outstanding common shares of a target company before establishing a much larger stake. A toehold purchase allows a party to buy stock in a company without filing a notice with the SEC and with the target company.

Toehold purchase.

A toehold purchase is one in which an individual investor or investment firm caps holdings in a potential target company at less than 5% of the company's outstanding stock.

Presumably that's because once an investor has acquired 5% or more of the stock, the investor must notify the company, the market where the company is listed, and the Securities and Exchange Commission (SEC). That notification must explain the next steps the investor intends to take, such as a possible takeover bid.

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Toehold switches: de-novo-designed regulators of gene expression.
"Despite the buzz, consumer-directed health plans have barely gained a toehold among Americans with employer-sponsored insurance," Jon Gabel, vice president of the Center for Studying Health System Change, said in a statement.
"Dichotomy CMVII": Mask'd shadow, monster at the shoulder hoverd/Urging ending; horror opend ravening/Mouth to gorge on all days; this was shadowd/Valley, land of desert blotting greengrowth,/Time that damps eternity with pain;/Onrush of cold with winter's barren threats,/Reluctant emrald losing toehold, plunging:/This then life's tale; he who made you asks/Not contemplation, pressing precipice,/But toil in yoke maturity accepts;/And future holding toil imprisoned; one/Must cope by building new work, fanciful./Thus taxing that which creates, beckons, asks/The spirit on; for only that would live.
The investment comprises the junior-most tier of a $750 million financing for the 1.78 million square foot tower, giving the company a toehold in this attractive market.
States should ensure that school board elections are held with other elections so that narrow interest groups don't gain such a toehold.
The company controlled by Mexican billionaire Carlos Slim could gain a stronger toehold in the Brazilian market with the planned purchase of a 51.79% voting interest in Embratel Participacoes for $360 million in cash.
But then, when you read the books, you discover she's stood with just a toehold on a rock 200 feet up in the air and contemplated what she calls her next "crux move": pulling herself out from under an overhang to the next level of rock.
If DAM is just now getting a toehold into media companies, what has to happen to create more of a driver for companies to deploy it?
After Pittsburgh-based Highmark Life & Casualty reviewed its technology as a part of assessing its toehold against the competition, it realized it had too many legacy systems splicing information together.
Unfortunately, Young's other attempts to gain a toehold in the U.S.
The narrow-opening, welded-mesh construction is designed to prevent a fingerhold or toehold and the use of cutting tools.
Drawing on research at leading universities, the Joyce Foundation reveals in the report that employment-based policies adopted by many states - especially in economic good times - have helped some families get a toehold on the economic ladder.