Rump

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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.

INVESTOPEDIA EXPLAINS 'Rump'

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

RELATED TERMS
  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
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    Any event that brings material change to a company and affects ...
  3. Tender

    To invite bids for a project, or to accept a formal offer such ...
  4. Tender Offer

    An offer to purchase some or all of shareholders' shares in a ...
  5. Merger

    The combining of two or more companies, generally by offering ...
  6. Vertical Merger

    A merger between two companies producing different goods or services ...
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