What is a Phantom Stock Plan? A phantom stock plan is a type of employee incentive plan that gives employees the right to receive a cash or stock bonus based on the performance of the company. There are two types of phantom stock plans: 1. Non-qualified phantom stock plans 2. Incentive stock plans Non-qualified phantom … Read more
A Market Standoff Agreement is an agreement between two parties to refrain from buying or selling a security or other financial instrument for a specified period of time. The agreement may be used to prevent a potential market takeover or to allow time for negotiations. Why do companies put themselves on the stock market? There … Read more
In the context of stocks, standby underwriting refers to an arrangement in which an investment bank agrees to purchase any unsold shares of a new stock issue at a predetermined price. This provides some assurance to the issuer that the stock will be sold, and also allows the investment bank to make a profit if … Read more
A pairs trade is an investing strategy in which an investor buys one asset and simultaneously sells another asset that is correlated with the first asset. The goal of a pairs trade is to profit from a price discrepancy between the two assets. For example, an investor might buy shares of Company A and sell … Read more
