Investor Glossary-white knightInvestor Glossary-white knightInvestor Glossary-white knightInvestor Glossary-white knightInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

White Knight

The HTML to link to this page
 

A white knight is a friendly bidder who steps in to help a company that is having financial difficulties. The efforts of a white knight often occur during a takeover: the white knight makes a friendly bid to buy the struggling company in order to avoid the unwanted change in ownership. A white knight may do this voluntarily, or may be asked to do this by a company's management (this doesn't mean that the white knight will pull out after the bidding is complete). A white knight may also try to save a struggling company by simply putting money into that company. If a company is doing poorly financially, no other entities might be interested in it. The white knight accepts a significant risk when acquiring an indebted or bankrupt company. After acquisition, the white knight may try to rebuild the firm.



Rate this white knight definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: stock market close, 1031 exchange, risk management, ex-dividend date, average price per share, Zero Cost Collar, 1035 exchange, implied volatility, option premium, inflation, debt service coverage, real GDP, phantom income, class C shares, labor relations, current ratio, covered put, irrevocable trust, annual return, ex-dividend, FICO score, APR, Key Rate Duration, margin rate, FTSE, command economy, LIBOR, 144a, stock split, open position, dividends payable, balance sheet, reverse mortgage, VIX, liquidity ratio, EBITDA, 401a, required rate of return, deferred revenue, diluted share, per diem, minority interest, in escrow, retained earnings, wholly-owned subsidiary, deferred tax, cancelled check, limit order, quality assurance


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use