Define: Vendor Placing

Business, Legal & Accounting Glossary

Definition: Vendor Placing


Quick Summary of Vendor Placing


A type of placing used as a method of financing a takeover in which the purchasing company issues its own shares as payment to the company being bought, with the prearranged agreement that these shares are then placed with investors in exchange for cash.



What is the dictionary definition of Vendor Placing?

Dictionary Definition


Vendor placing is a type of placing used as a means of acquiring another company or business.


Advertisement



Full Definition of Vendor Placing


This is a type of placing used as a means of acquiring another company or business.

For example: If company A wishes to buy a business from Company B, it issues company A shares to company Y as payment alongside a prearranged agreement that those shares are then placed with investors in exchange for cash.

Vendor placings are sometimes utilised as a cheaper alternative to a rights issues; and as such are quite popular with some companies.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/vendor-placing/
Modern Language Association (MLA):
Vendor Placing. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 06, 2020 https://payrollheaven.com/define/vendor-placing/.
Chicago Manual of Style (CMS):
Vendor Placing. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/vendor-placing/ (accessed: April 06, 2020).
American Psychological Association (APA):
Vendor Placing. PayrollHeaven.com. Retrieved April 06, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/vendor-placing/

Definition Sources


Definitions for Vendor Placing are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th May, 2019