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. Agency Problem

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

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

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

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

    When a group of shareholders are persuaded to join forces and ...
  6. Suicide Pill

    A defensive strategy by which a target company engages in an ...
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. Payroll Deductions Pay Off
    Retirement

    Payroll Deductions Pay Off

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. 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 ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center