Overhang

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Dictionary Says

Definition of 'Overhang'

A measure of the potential dilution to which a common stock's existing shareholders are exposed due to the potential that stock-based compensation will be awarded to executives, directors or key employees of the company. It is usually represented in percentage form and is calculated as stock options granted, plus the remaining options that have yet to be granted divided by the total shares outstanding.
Investopedia Says

Investopedia explains 'Overhang'

There is no precise rule-of-thumb for determining what level of options overhang is bad for investors but, generally speaking, the higher the number, the greater the risk. If a company has a very high options overhang, it must generate even higher levels of growth in order to provide decent returns to investors net of the overhang's dilutive effects on investor returns.
Search results for

'Overhang'

  • Trademarks Of A Takeover Target

    http://www.investopedia.com/articles/stocks/07/takeover_target.asp
    ... Clean Capital Structure Large firms want an acquisition to go forward on a timely
    basis, but some companies have a large amount of overhang that dissuades ...

  • Hasbro Is A Great Play

    http://stocks.investopedia.com/stock-analysis/2011/Hasbro-Is-A-Great-Play-HAS-MAT-DISCA0729.aspx
    ... Rising costs and inventory overhang has dogged the stock. ... The excellent reception
    overseas will be crucial to transforming inventory overhang into cash flow. ...

  • Nordstrom: Recession Proof But Not Weather Proof

    http://stocks.investopedia.com/stock-analysis/2007/Nordstrom_Recession_Proof_But_Not_Weather_Proof_JWN.aspx
    ... higher as a result, and sales failing to materialize, the company is now expected
    to start discounting its prices to move its sizable merchandise overhang. ...

  • Why You Should Wait To Buy A House - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/Why-You-Should-Wait-To-Buy-A-House.aspx
    ... While this is a positive downtrend from the inventory peak of 4.58 million units
    in July 2008, the inventory overhang is still having a negative effect on ...

  • Glazing Over Krispy Kreme

    http://stocks.investopedia.com/stock-analysis/2009/Glazing-Over-Krispy-Kreme-KKD-THI-SBUX-MCD1210.aspx
    Krispy Kreme suffers from the overhang of its years-ago
    high-flying IPO promise which never delivered. ...

  • The Rest Of The Homebuilder Story

    http://stocks.investopedia.com/stock-analysis/2010/The-Rest-Of-The-Homebuilder-Story-BZH-MTH-RYL-KBH-PHM-MDC-DHI-HOV0216.aspx
    ... On the other hand, with the lingering credit struggles, the so-called phantom real
    estate market overhang and a sheer excess capacity for building homes given ...

  • How The Republican Wins Are Benefiting HMOs

    http://stocks.investopedia.com/stock-analysis/2010/How-The-Republican-Wins-Are-Benefiting-HMOs-UNH-AET-WLP-HUM1110.aspx
    ... Despite the strong and favorable medical cost trends that have benefited the HMOs
    all year, the stocks still have the overhang of the Health Reform Act. ...

  • Amusement Park Rebound

    http://stocks.investopedia.com/stock-analysis/2009/Amusement-Park-Rebound-FUN-DIS-WOLF-ISCA-LYV-TKTM0902.aspx
    ... and several other well known properties, but Cedar Fair had to go deeply into debt
    to finance the purchase, and still owes $1.7 billion as an overhang of that ...

  • Tim Hortons Just Keeps Scoring Goals

    http://stocks.investopedia.com/stock-analysis/2010/Tim-Hortons-Just-Keeps-Scoring-Goals-THI-BKC-SBUX-WEN-KKD0303.aspx
    ... food business. The recession and its overhang have provided a difficult
    climate for companies to make headway. Companies are trying ...

  • Spinoffs To Watch

    http://stocks.investopedia.com/stock-analysis/2009/Spinoffs-To-Watch-CAH-RTP-WLT-OCN0427.aspx
    ... Lastly, a partial spinoff can leave a large overhang of shares still owned by the
    parent company which investors expect to flood the market in the future. ...

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