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Finance Dictionary and Glossary of Investment Terms
Often used in risk arbitrage. Illegal holding of stock by a third party, or the financing of such a stock, in which the third party's sole reason for holding the stock is to conceal ownership or control of a raider, thus sidestepping the Williams Act requirements of 5% holding limits. See: Rule 13d.
The illegal practice of an acquiring company holding stock under a related third party for the sole purpose of concealing ownership of the target company before attempting corporate takeover.