Fair price

Definition: [crh] The equilibrium price for futures contracts. Also called the theoretical futurDefinition: es price, which equals the spot price continuously compounded at the cost of carry rate<Definition: /A> for some time interval. In the context of corporate goverance, Fair-Price provisions limit the range of prices a bidder can pay in two-tier offers. They typically require a bidder to pay to all sDefinition: hareholders the highest price paid to any during a specified period of time before the commencement of a tender offer and do not apply if the deal is approved by the board of directors or a supermajoDefinition: rity of the target's shareholders. The goal of this provision is to prevent pressure on the target's shareholders to tender their shares in the front end of a two-tiered tender offer, and they have tDefinition: he result of making such and acquisition more expensive. A majority of states have fair price laws.

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