contingent issue

contingent issue definition - business

contingent issue

An issue of securities that is to be distributed only when a specified event has occurred or when a given standard has been met. For example, the poison-pill defense against hostile takeovers involves issuance of additional securities in the event that the raider acquires a certain percentage of the takeover target's outstanding stock.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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