Merger Securities

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Dictionary Says

Definition of 'Merger Securities'

A non-cash asset paid to the shareholders of a corporation that is being acquired or is the target of a merger. Theses securities generally consist of bonds, options, preferred stock and warrants, among others.
Investopedia Says

Investopedia explains 'Merger Securities'

Merger securities can become undervalued when large investment firms are required to sell them as a result of their strict investment requirements. For example, a large mutual fund may receive stock options from an acquiring company when one of the companies held in its portfolio is purchased. If the fund has a policy against holding options, it may be required to sell them, which can then cause the price of the options to fall to very low levels.
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'Merger Securities'

  • Cashing In On Corporate Restructuring

    http://www.investopedia.com/articles/stocks/06/mainvesting.asp
    ... World Of M&As.) The Process While most M&A transactions are handled through stock
    and cash offerings, others are handled through the use of merger securities. ...

  • Series 63 Study Guide - Securities - Viatical Settlements and ...

    http://www.investopedia.com/exam-guide/series-63/securities/viatical-settlements-definition-sale.asp
    ... A pledge of securities as collateral for a loan; A stock dividend; Securities
    received in exchange as a result of reorganization or merger. ...

  • How To Profit From Debt Securities In Failing Companies

    http://www.investopedia.com/articles/stocks/07/distressed-debt.asp
    ... Hedge funds focus on purchasing liquid debt securities that they can sell at ... be
    restructured successfully or brought back to life through a merger, takeover or ...

  • Series 63 Study Guide - The Foundation - The Uniform Securities ...

    http://www.investopedia.com/exam-guide/series-63/foundation/usa-uniform-securities-act-part-6.asp
    ... those people who own securities of company "A" receive stock from company "B" because
    of a merger or reorganization, the receipt of those securities by the ...

  • Long-Distance Merger Deserves Caution

    http://stocks.investopedia.com/stock-analysis/2009/Long-Distance-Merger-Deserves-Caution-S-LVLT-T-VZ-Q0618.aspx
    ... Long-Distance Merger Deserves Caution. ... Sure, Sprint has about $4.5 billion in cash
    and marketable securities, but it's also has about $21.6 billion in debt to ...

  • Trade Takeover Stocks With Merger Arbitrage

    http://www.investopedia.com/articles/stocks/06/mergerarbitrage.asp
    ... that individual investors steer clear of the highly risky merger arbitrage arena. ...
    lawyers at their disposal to evaluate deals and securities analysts with a ...

  • Trading The Odds With Arbitrage

    http://www.investopedia.com/articles/trading/04/111004.asp
    ... Benjamin Graham's risk arbitrage formula used for takeover and merger arbitrage
    can ... relies on a strong correlation between two related or unrelated securities. ...

  • The Obligatory RIM Merger Speculations

    http://stocks.investopedia.com/stock-analysis/2011/The-Obligatory-RIM-Merger-Speculations-RIMM-AAPL-MMI-ARMH-MSFT-DELL-HPQ0622.aspx
    ... The Obligatory RIM Merger Speculations. ... (For related reading, see How To Profit
    From Debt Securities In Failing Companies.). "Can Buy" Vs. ...

  • The Pros And Cons Of A Pulte/Centex Merger

    http://stocks.investopedia.com/stock-analysis/2009/The-Pros-And-Cons-Of-A-PulteCentex-Merger-PHM-CTX0414.aspx
    ... you can benefit, see Mergers And Acquisitions - Another Tool For Traders and The
    Merger - What To Do ... He has held his series 6,7,24, and 63 securities licenses. ...

  • Series 66 Study Guide - Regulation of Securities - Exempt ...

    http://www.investopedia.com/exam-guide/series-66/regulation-of-securities/exempt-transactions.asp
    ... in business, is not in bankruptcy, and is not in any type of merger and the ... where
    the issuer of the security files a report with the Securities and Exchange ...

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