toehold purchase investment & finance definition
The
acquisition of less than five percent of the shares of a company that is a
target for a takeover. Once the five percent level is reached, the acquirer has
to file Schedule 13D with the Securities and Exchange Commission to outline its
plans and intentions under the requirements of the Williams Act.
See toehold purchase in Wall Street Words
The purchase of less than 5% of the outstanding common shares of a target company before establishing a much larger stake. A toehold purchase allows a party to buy stock in a company without filing a notice with the SEC and with the target company.
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