noun
General Slang
Stub stock
· noun · finance
The thin sliver of equity left over after a company loads up on debt.
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Definitions
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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
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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
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