Stub

What Does Stub Mean?
Stock in a company that is over-leveraged as a result of recapitalization.

Investopedia explains Stub
Stub stock is very speculative and risky. Stub stock's advantage over junk bonds is that it has unlimited potential if the company turns things around.

Related Terms

Debt/Equity Ratio
Junk Bond
Leveraged Recapitalization
Recapitalization
Risk Arbitrage
More Related Terms

Related Links

Debt Reckoning - Learn about debt ratios and how to use them to assess a company's financial health. You could save a lot of money!
When Companies Borrow Money - Here we explain how to evaluate whether a company's debt will pose a threat to investors.
EV Gets Into Gear - Learn how enterprise value can help investors compare companies with different capital structures.
Junk Bonds: Everything You Need To Know - Don't be fooled by the name - junk bonds may be for you if you know how to analyze them.

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