noun
General Slang
Stub stock
· noun · finance
The thin sliver of equity left over after a company loads up on debt.
0
Definitions
1
After a leveraged recap or LBO, most of the cap structure is debt. What's left of the equity is the stub — high-risk, high-reward, and prone to either ten-bagging or going to zero.
“He bought the stub stock after the recap and rode it from two bucks to twenty.”
by community
0
Stub stock In A Sentence
He bought the stub stock after the recap and rode it from two bucks to twenty.
Origin & Usage
Variants
stub equity
People Also Ask
What is stub stock?
Stub stock is the thin sliver of equity left over after a company loads itself up with debt, such as after a leveraged buyout.
How do you use stub stock in a sentence?
After the buyout, shareholders were left holding little more than stub stock.
Comments 0