Appraisal Right

Dictionary Says

Definition of 'Appraisal Right'

The right of shareholders to demand the fair payment of securities undergoing a merger by a third party valuator.
Investopedia Says

Investopedia explains 'Appraisal Right'

It's a protection policy for shareholders, preventing corporations involved in the merger from paying less than the company is worth to the shareholders.

Related Definitions

  • Acquisition

    A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part ...
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  • Appraisal

    A valuation of property (ie. real estate, a business, an antique) by the estimate of an authorized person. In order to be a valid appraisal, the authorized person will have a designation ...
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  • Merger

    The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.
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    • Takeover

      A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
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    • Appraisal Approach

      A procedure for determining an asset’s value. The appraisal approach values assets based on a number of factors, such as its cost, the income it generates or its fair market value as ...
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