Parking Violation

AAA

DEFINITION of 'Parking Violation'

The illegal practice of an acquiring company concealing ownership of the target company by holding stock under a related third party before attempting corporate takeover.

INVESTOPEDIA EXPLAINS 'Parking Violation'

Unlike the parking violations that many of us as drivers commit inadvertently, this type of violation is  deliberately hostile. By having a third party hold significant portions of stock, the acquiring company can prepare for a takeover without exceeding certain ownership reporting levels and alerting the target company.

RELATED TERMS
  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. Hostile Takeover

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

    A form of kiting shares that a brokerage commits by moving long ...
  4. Target Firm

    A company which is the subject of a merger or acquisition attempt. ...
  5. Roll-Up Merger

    A rollup (also known as a "roll up" or a "roll-up") ...
  6. Revlon Rule

    The legal requirement that a company’s board of directors make ...
Related Articles
  1. Mergers And Acquisitions: Understanding ...
    Fundamental Analysis

    Mergers And Acquisitions: Understanding ...

  2. The Advantages Of Investing In Aggressive ...
    Investing Basics

    The Advantages Of Investing In Aggressive ...

  3. The Basics Of Mergers And Acquisitions
    Options & Futures

    The Basics Of Mergers And Acquisitions

  4. Material Adverse Effect A Warning Sign ...
    Markets

    Material Adverse Effect A Warning Sign ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center