stubs

stubs definition - business

stubs

The shares of equity in a firm that is financed almost completely with debt. Stubs are often created when firms go through a leveraged buyout or pay big cash dividends in order to fend off a takeover.

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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