Warehousing

AAA

DEFINITION of 'Warehousing'

1. A procedure whereby a company gradually builds up a holding of shares in a company it wishes to takeover in the future.

2. The process of storing goods within a storage facility.

INVESTOPEDIA EXPLAINS 'Warehousing'

1. The acquiring company "warehouses" small lots of shares by holding them under the name of a nominee. Companies use the warehousing technique of share acquisition when they wish to remain anonymous or are unable to make a public tender offer.

RELATED TERMS
  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. Warehouser's Liability Form

    A document that describes the obligations of a storage facility ...
  3. Warehouse Bond

    A type of financial protection that assures an individual or ...
  4. Warehouse-To-Warehouse Clause

    A clause in an insurance policy that provides for coverage of ...
  5. Acquisition

    A corporate action in which a company buys most, if not all, ...
  6. Warehouse Receipt

    A receipt used in futures markets to guarantee the quantity and ...
Related Articles
  1. War's Influence On Wall Street
    Bonds & Fixed Income

    War's Influence On Wall Street

  2. Mergers And Acquisitions: Understanding ...
    Fundamental Analysis

    Mergers And Acquisitions: Understanding ...

  3. The Merger - What To Do When Companies ...
    Investing Basics

    The Merger - What To Do When Companies ...

  4. Bloodletting And Knights: Medieval Investment ...
    Options & Futures

    Bloodletting And Knights: Medieval Investment ...

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