Investopedia

Continue to Site »

Exon-Florio Provision

Filed Under »
Dictionary Says

Definition of 'Exon-Florio Provision'

A provision that allows the president of the United States to suspend or block the foreign acquisition of a U.S.-based company for reasons of national security. The Exon-Florio provision only allows for the acquisition to be blocked if there is clear evidence that the foreign acquiring party could threaten national security through its control of the acquired company and the provisions of law don't provide the adequate authority for the U.S. to protect national security.
Investopedia Says

Investopedia explains 'Exon-Florio Provision'

The Exon-Florio Provision was instituted by the Committee on Foreign Investment in the U.S. (CFIUS) and was implemented in 1988. It is covered under Section 721 of the Defense Production Act of 1950. This provision can reduce the level of direct foreign investment as foreign companies may be prevented from carrying out acquisitions.

Articles Of Interest

  1.

    Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.

  2. Terrorism's Effects On Wall Street

    Terrorist activity tends to have a negative impact on the markets. Find out how to take cover.

  3. What does the law say about non-U.S. citizens buying stocks of U.S. companies? Are there any restrictions?

    The law is very fuzzy on the matter of who may own U.S. securities and for what purpose. The U.S. follows the common law system, which is based on precedent. It evolves to reflect changes in ...

  4. The Basics Of Mergers And Acquisitions

    Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work.

  5. Austerity: When The Government Tightens Its Belt

    When a government tightens its belt in tough economic times the entire nation feels the squeeze.

  6. Approved: Paying Online Sales Tax

    States will now be allowed to collect sales taxes on purchases made from Internet-based retailers even if the retailer has no physical presence in that state.

  7. Sequestration: What Will It Do And What Should You Do?

    Learn about the sequester, and possible ways to play it.

  8. Stocks That Follow This Simple Practice Beat The Markets 6-To-1

    We look at what makes Shaw Communications so special, and how you can find other smilarily special stocks.

  9. The Secret Finances Of The Vatican Economy

    The Vatican is the smallest country in the world, and has an economy shrouded in secrecy. Here are some little known facts that will give you a peek into the mysterious world of the Vatican's ...

  10. What It Takes To Be "Made In The USA"

    Discover the rules and standards behind the "Made in the USA" label.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center