Investor Glossary-zombieInvestor Glossary-zombieInvestor Glossary-zombieInvestor Glossary-zombieInsightful 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

Zombie

The HTML to link to this page
 

The term "zombie" refers to a company that is insolvent or facing bankruptcy, but is still operating as it awaits the subsequent merger or foreclosure. A zombie, in the traditionally haunting sense, is a living corpse; a zombie is associated with "the living dead." A zombie company is considered to be in a figurative state of "living but dead" because it is not expected to continue operating, despite its ability to do so now. A zombie company may be in or close to filing for bankruptcy - Chapter 11 - which allows a company to continue operating while it restructures its debt. A zombie company is typically considered a risky investment, so investors may choose to avoid a corporate zombie just as they would avoid a supernatural zombie. Of course, as with many investments, the higher the risk, the higher the potential payoff.



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


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2013 Investor Glossary - All rights reserved - Terms of Use