Celler-Kefauver Act
What is the Celler-Kefauver Act? The United States Congress passed the Celler-Kefauver Act in 1950 with the goal of strengthening the provisions of the Clayton Antitrust Act of 1914. Specifically, the act was enacted to seal a loophole in the Clayton Act regarding certain forms of mergers and acquisitions. While the Clayton Act outlawed horizontal...
Use of Proceeds Statement
What is the Use of Proceeds Statement? The use of proceeds statement is a short document that summarizes how a company that aims to secure additional capital is going to spend the funds. In other words, the document provides the reader with a snapshot of what aspects of the business the company will spend money...
Direct Listing
What is a Direct Listing? A direct listing is a process by which a company can go public by selling existing shares instead of offering new ones. Companies that choose to go public using the direct listing method usually have different goals than those that use an initial public offering (IPO). Direct Listing vs. Initial...
Offering Price
What is the Offering Price? The offering price is the per share price of publicly issued securities set by an underwriter and at which the shares are available for purchase. Although the term is mostly used in the context of the issuance of shares, it is also applicable in the issuance of other securities, including...
Dead Hand Provision
What is a Dead Hand Provision? A dead hand provision is a type of poison pill that massively dilutes the shares of the target company during a hostile takeover attempt. When an acquirer buys a stake in the target company, rights automatically issue, allowing the shareholders of the target to buy newly issued shares at...
