stub equity


A stock being sold for a greatly reduced price as a result of serious financial difficulties. Stub equity is considered a risky investment but can offer high payoffs if the company is able to turn around their financials.

Use stub equity in a sentence

You should always try and make sure that you are getting the most stub equity that you can get from any deal.

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The stub equity was a great deal on the stock price as we were not overly concerned about their financial struggles.

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My hedge fund manager agreed to buy shares in the severely distressed investment bank because he believed that it still had stub equity, even in its current condition.

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structured yield product exchangeable for stock (STRYPES) stuckholder