Scorched-Earth Policy: Often used in risk arbitrage. Any technique a company that has become the target of a takeover attempt uses to make itself unattractive to the acquirer. For example, it may agree to sell off its crown jewels, or schedule all debt to become due immediately after a merger.

 

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Scorched-Earth Policy: Often used in risk arbitrage. Any technique a company that has become the target of a takeover attempt uses to make itself unattractive to the acquirer. For example, it may agree to sell off . . . View Full Definition

Perfect Market View (Of Dividend Policy): Analysis of a decision on dividend policy, in a perfect capital market environment, that shows the irrelevance of dividend policy.

Policy: A written statement that reflects the employer’s standards and objectives relating to various employee activities and employment-related matters.

Policy Asset Allocation: Way in which an investor seeks to assess an appropriate long-term 'normal' mix of assets that represents an ideal blend of controlled risk and enhanced return.

Policy Loan: A loan often made at a below-market interest rate from an insurance company to a policyholder that is secured by the cash surrender value of a life insurance policy.

Policy Limit: The maximum dollar amount of coverage provided by an insurance company for a certain policy.

Participating Policy: When policyholders have what is called a participating policy from a mutual insurance company, they are eligible to receive dividends based on the company’s financial performance. When claim . . . View Full Definition

Paid-Up Policy: A paid-up policy is a whole life insurance policy for which no additional premium payments are required to keep in force. Generally, a standard paid-up policy lasts the rest of your lifetime . . . View Full Definition

National Environmental Policy Act: The Act requires an environmental impact statement for federal actions that significantly affect the quality of the environment.

National Drought Policy Commission: P.L. 105-199 (July 16, 1998), the National Drought Policy Act, authorized creation of the Commission to conduct a study of current federal, state, local and tribal drought preparedness, and . . . View Full Definition