DEFINITION of 'Rump'

The name given to the group of investors refusing to tender their shares into a corporate action, such as a merger or acquisition.

BREAKING DOWN 'Rump'

Should the quantity of rump shares be large enough, a corporate action may be stalled or halted.

RELATED TERMS
  1. Proration

    A situation during a corporate action in which the available ...
  2. Tender Offer

    An offer to purchase some or all of shareholders' shares in a ...
  3. Hedged Tender

    A strategy in a tender offer where an investor short sells a ...
  4. Mergers And Acquisitions - M&A

    A general term used to refer to the consolidation of companies. ...
  5. Creeping Tender Offer

    A takeover strategy involving the gradual acquisition of the ...
  6. Legal Tender

    Any official medium of payment recognized by law that can be ...
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RELATED FAQS
  1. What happens to the shares of stock purchased in a tender offer?

    Learn what a tender offer is, whether it is a good idea to accept a tender offer and what happens to the shares of stock ... Read Answer >>
  2. How is a tender offer used by an individual, group or company seeking to purchase ...

    Learn how tender offers are used in takeover attempts, and understand the difference between a hostile takeover and a friendly ... Read Answer >>
  3. What usually happens to the price of a stock when a tender offer for shares of the ...

    Learn what happens to the price of a stock when a tender offer is made public. Some of the most contentious takeovers have ... Read Answer >>
  4. Why would it be in the interest of shareholders to accept a tender offer?

    Learn when it is in the best interests of shareholders to accept a tender offer. A tender offer is a bid to buy a large portion ... Read Answer >>
  5. What is the difference between a merger and an acquisition?

    Read about the legal and practical differences between a corporate merger and corporate acquisition, two terms often used ... Read Answer >>
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