What is the meaning of Target company?

Often used in risk arbitrage. Firm chosen as an attractive takeover candidate by a potential acquirer. The acquirer may buy up to 5% of the target's stock without public disclosure, but it must report all transactions and supply other information to the SEC, the exchange the' Target company' is listed on, and the target company itself once the 5% threshold is hit. See: Raider.

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APABarry Goldsmith. (2010). target company. Retrieved September 29, 2026, from http://smartdefine.org/target_company/definitions/1164831
ChicagoBarry Goldsmith. 2010. "target company" http://smartdefine.org/target_company/definitions/1164831 (accessed September 29, 2026).
HarvardBarry Goldsmith 2010, target company, Smart Define, viewed 29 September, 2026, <http://smartdefine.org/target_company/definitions/1164831>.
MLABarry Goldsmith. "target company" 21 October 2010. Web. 29 September 2026. <http://smartdefine.org/target_company/definitions/1164831>
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