Rump

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.

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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?

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  5. What is the difference between a merger and an acquisition?

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