Gray Knight

DEFINITION of 'Gray Knight'

A second, unsolicited bidder in a corporate takeover. A gray knight enters the scene in order to take advantage of any problems between the first bidder and the target company.

BREAKING DOWN 'Gray Knight'

Think of a gray knight as a circling vulture waiting to pick clean the leftovers.

In some parts of the world gray is spelled "grey."

RELATED TERMS
  1. Yellow Knight

    A company that was once making a takeover attempt but ends up ...
  2. White Knight

    A white knight is an individual or company that acquires a corporation ...
  3. Black Knight

    A company that makes a hostile takeover offer for a target company. ...
  4. Gray Market

    An unofficial market where securities are traded. Gray (or “grey”) ...
  5. Gray List

    A list of stocks that are ineligible for trade by an investment ...
  6. Gray Charges

    Fees consumers pay via credit card or debit card for unwanted ...
Related Articles
  1. Forex Education

    Black Vs. Grey

    Candlestick charts can look confusing but they are actually quite simple and easy to understand.
  2. Investing Basics

    What is a Takeover?

    A takeover happens when one company makes a bid to acquire a target company.
  3. Investing Basics

    Warding Off Hostile Takeovers

    The purpose of this article is to provide a general overview of hostile corporate takeovers, while highlighting a general course of action against such activity. This article provides basic information ...
  4. Fundamental Analysis

    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.
  5. Active Trading

    The Hunters and the Hunted

    We all know that publicly traded companies are enthralled by their stocks, but why? Here we take a look at the top 5 reasons why companies care so much about their stock prices.
  6. Options & Futures

    Mergers and Acquisitions: Doing The Deal

    Start with an Offer When the CEO and top managers of a company decide that they want to do a merger or acquisition, they start with a tender offer. The process typically begins with the acquiring ...
  7. Forex Education

    Open And Close

    Candlestick charts can look confusing but they are actually quite simple and easy to understand.
  8. Options & Futures

    Pinpoint Takeovers First

    Use these seven steps to discover a takeover before the rest of the market catches on.
  9. Fundamental Analysis

    Reverse Takeover

    Learn more about this type of takeover and how companies use it to avoid IPOs.
  10. Taxes

    Personal Vs. Business Expenses

    An experienced tax preparer can usually sense when a customer is providing fraudulent information to them. Find out what sets off a tax preparers lie detector.
RELATED FAQS
  1. How do I identify a gray market?

    The term "gray market" refers to the market for the purchase and sale of uncirculated securities that will be offered at ... Read Answer >>
  2. What are some examples of 'gray' charges on my credit card statement?

    Read credit card statements carefully to avoid gray charges. Find the fine print before making online purchases, and remember ... Read Answer >>
  3. What did Knight Trading Group do to incur a $1.5 million fine for violating trading ...

    The dotcom boom accelerated many deceitful business practices that first became apparent during the '80s and '90s. Many of ... Read Answer >>
  4. Are 'gray' credit card charges legal?

    Read the fine print and all credit card statements carefully to avoid misleading charges that often go unnoticed on credit ... Read Answer >>
  5. How can a company resist a hostile takeover?

    Learn about some of the defense strategies a public company's board of directors might employ to prevent a hostile bidder ... Read Answer >>
  6. How can a company buy back shares to fend off a hostile takeover?

    Learn about why a business might use a stock buyback to thwart a hostile takeover attempt by reducing its total assets and ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center