Gridlock

AAA

DEFINITION of 'Gridlock'

A government, business or institution's inability to function at a normal level due either to complex or conflicting procedures within the administrative framework or to impending change in the business.




INVESTOPEDIA EXPLAINS 'Gridlock'

In business as in traffic, little to nothing gets done when gridlock happens. This can be highly problematic and costly for a company or industry. For example, gridlock can occur if there is infighting within a company, with two groups competing to gain control of the company. This infighting can effectively create a situation in which business transactions cannot be completed until the problem is solved.

RELATED TERMS
  1. Suicide Pill

    A defensive strategy by which a target company engages in an ...
  2. Agency Problem

    A conflict of interest inherent in any relationship where one ...
  3. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  4. Black Knight

    A company that makes a hostile takeover offer for a target company. ...
  5. People Pill

    A defensive strategy to ward off a hostile takeover. The target ...
  6. Proxy Fight

    When a group of shareholders are persuaded to join forces and ...
Related Articles
  1. Mergers And Acquisitions: Understanding ...
    Fundamental Analysis

    Mergers And Acquisitions: Understanding ...

  2. Governance Pays
    Options & Futures

    Governance Pays

  3. The Basics Of Mergers And Acquisitions
    Options & Futures

    The Basics Of Mergers And Acquisitions

  4. Starbucks As An Example Of The Value ...
    Investing News

    Starbucks As An Example Of The Value ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center