Contingent Value Rights - CVR

Dictionary Says

Definition of 'Contingent Value Rights - CVR'

A type of right given to shareholders of an acquired company (or a company facing major restructuring) that ensures they receive additional benefit if a specified event occurs. A contingent value right is similar to an option because it often has an expiration date that relates to the time the contingent event must occur.
Investopedia Says

Investopedia explains 'Contingent Value Rights - CVR'

For example, shareholders of an acquired company may receive a CVR that enables them to receive additional shares of the target company in the event that target company's share price falls below a certain level by a specified date. 

Another example of a CVR would be for a target company to set aside a large sum of money that would be transferred to the shareholders of the acquired company in the event that the price of the target company's shares do not meet a certain target or fall below a specified price.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Rights

    A security ...
  2. Warrant

    A derivative ...
  3. Call Warrant

    A financial ...
  4. Put Warrant

    A type of ...
  5. Mergers And Acquisitions - M&A

    A general term ...
  6. Acquisition

    A corporate ...
  7. Target Firm

    A company which ...
  8. Expiration Date

    The last day ...
  9. Contingent Voting Power

    A provision ...
  10. Minimum Wage

    The minimum ...

Articles Of Interest

  1. Understanding Rights Issues

    Not sure what to do if a company invites you to buy more shares at discount? Here are some of your options.
  2. Warrants: A High-Return Investment Tool

    Discover the advantages of this largely unexploited investment vehicle.
  3. The Basics Of Mergers And Acquisitions

    Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work.
  4. Carl Icahn's Investing Strategy

    Buying up failing investments and turning them around helped to create the "Icahn lift" phenomenon.
  5. Finding Solid Buy-And-Hold Stocks

    Find out how to look at the big picture - even when the market's short-term outlook is less than rosy.
  6. Female Managers Can Raise Share Values

    Women are quite capable of proving their worth in raising corporate value through various financial, managerial and human capabilities.
  7. Introduction To Incentive Stock Options

    Here are some basic highlights of how ISOs work and the ways they can be used.
  8. Beware Of Company Stock In Qualified Plans

    While this strategy does have a few advantages, it can also pose some substantial risks to employees.
  9. Employees Vs. Investors

    Who is more important to the CEO and a company's bottom line? Is it employees or company shareholders?
  10. Corporate Bonds: An Introduction To Credit Risk

    Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center