(FINANCE) when somebody buys a corporation using borrowed money ("leverage"), with the expectation that the new owner will able to pay for it from the corporation's own profits.
Kohlberg Kravis and Roberts (KKR) developed the LBO back when Jerome Kohlberg, Jr. and Henry Kravis were still partners at Bear Stearns (1960's). The technique was refined by Michael Milken's methods of underwriting and trading junk bonds. At the same time, corporate raiders and takeover artists like T. Boone Pickens perfected greenmail as a way to make money from failed hostile takeovers.
Kohlberg Kravis and Roberts (KKR) developed the LBO back when Jerome Kohlberg, Jr. and Henry Kravis were still partners at Bear Stearns (1960's). The technique was refined by Michael Milken's methods of underwriting and trading junk bonds. At the same time, corporate raiders and takeover artists like T. Boone Pickens perfected greenmail as a way to make money from failed hostile takeovers.
In constant US dollars, the largest leveraged buyout deal in history was the KKR takeover of RJR Nabisbo for $31.1 billion (1989). In 2006, several deals of even larger size were planned or attempted, but adjusted for inflation, they were not as large.
by Abu Yahya September 04, 2010
Get the leveraged buyout mug.(BUSINESS) a closely-held corporation has all or most of its stock owned by the management of the firm. In many cases, it has no stock at all (see "going public"), in which case it is a private company.
Usually people say "private corporation" to mean any company that is unaffiliated with the government, or any company run mainly for profit. It's impossible to buck this trend, so corporations with no issues of stock, or negligible amounts of stock held by the public, are called "private companies" despite the fact that not all companies are corporations. Cargill, Inc., for example, has annual revenues of $117 billion, but no shares available for trade. On the other hand, PricewaterhouseCoopers and Ernst & Young are private companies but not a corporations. They are limited liability partnerships. The term "closely held" would not apply to them since partnerships do not issue stock.
Usually people say "private corporation" to mean any company that is unaffiliated with the government, or any company run mainly for profit. It's impossible to buck this trend, so corporations with no issues of stock, or negligible amounts of stock held by the public, are called "private companies" despite the fact that not all companies are corporations. Cargill, Inc., for example, has annual revenues of $117 billion, but no shares available for trade. On the other hand, PricewaterhouseCoopers and Ernst & Young are private companies but not a corporations. They are limited liability partnerships. The term "closely held" would not apply to them since partnerships do not issue stock.
Koch Industries is a super-sized, closely held corporation with two owners--Charles and David Koch, heirs to the oil refiner Fred Koch. Thanks to this peculiar status, magazines like Forbes are not allowed to report ANY financial statistics of the company at all (sales figures are suspiciously rounded to "$100,000,000,000.00").
Publix Super Markets (at the other end of the spectrum) is closely held--by its 125,000 employees.
Publix Super Markets (at the other end of the spectrum) is closely held--by its 125,000 employees.
by Abu Yahya September 03, 2010
Get the closely held mug.(VERB) to ignore the fact that a particular action was a crime, and focus instead on possible problems it may cause for the perpetrator. Named for Charles Maurice de Talleyrand-Périgord (1754-1838), who famously remarked of Napoleon's murder of the Duc d'Enghein, "It was worse than a crime... It was a blunder."
Sometimes this is misspelled "tallyranding." It's not certain that Talleyrand ever said it; it was probably attributed by his many enemies.
WHY IT'S BAD
In March 1804, when Napoleon Bonaparte was consul of the French Republic, he became aware of the fact that a leader of the royalist opposition was hiding out across the border of France. Napoleon had him kidnapped, brought back to Strasbourg, "tried," and put to death. The unfortunate young man was never accused of doing anything illegal; he had not violated the laws of the French Republic because he was not in France, and when he had been, he was serving the previous government.
Whoever actually said "...worse than a crime...a blunder" was ignoring the fact that it was a crime to murder an innocent person, and focusing instead on the fact that it was DUMB. In some cases, such as this one, it's a reasonable thing to do; but if it becomes a habit then moral judgment is deliberately suspended.
It's the asshole's substitute for moral fiber.
Sometimes this is misspelled "tallyranding." It's not certain that Talleyrand ever said it; it was probably attributed by his many enemies.
WHY IT'S BAD
In March 1804, when Napoleon Bonaparte was consul of the French Republic, he became aware of the fact that a leader of the royalist opposition was hiding out across the border of France. Napoleon had him kidnapped, brought back to Strasbourg, "tried," and put to death. The unfortunate young man was never accused of doing anything illegal; he had not violated the laws of the French Republic because he was not in France, and when he had been, he was serving the previous government.
Whoever actually said "...worse than a crime...a blunder" was ignoring the fact that it was a crime to murder an innocent person, and focusing instead on the fact that it was DUMB. In some cases, such as this one, it's a reasonable thing to do; but if it becomes a habit then moral judgment is deliberately suspended.
It's the asshole's substitute for moral fiber.
There is altogether too much Talleyranding going on. This wasn’t a blunder; it was a crime.
(Taken from the comments of Jim Henley's blog, *Unqualified Offerings*, "I Already Shot You"--May 31, 2010)
(Taken from the comments of Jim Henley's blog, *Unqualified Offerings*, "I Already Shot You"--May 31, 2010)
by Abu Yahya June 03, 2010
Get the Talleyranding mug.(ECONOMICS) Total unemployed, plus discouraged workers, plus all other persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force. This includes workers who are not counted as "discouraged workers" for minor technical reasons. Therefore, if one wants to cite the percentage of discouraged unemployed, the true figure is U-5, not U-4.
The US Bureau of Labor Statistics regularly publishes six estimates of unemployment. The others are U-1, U-2, U-3, U-4, and U-6. Eurostat publishes one monthly estimate of unemployment for the European Union, which is approximately midway between U-3 and U-4.
The unemployment statistics for the USA are collected through a monthly Current Population Survey (CPS) (also known as the household survey) and an establishment survey.
The US Bureau of Labor Statistics regularly publishes six estimates of unemployment. The others are U-1, U-2, U-3, U-4, and U-6. Eurostat publishes one monthly estimate of unemployment for the European Union, which is approximately midway between U-3 and U-4.
The unemployment statistics for the USA are collected through a monthly Current Population Survey (CPS) (also known as the household survey) and an establishment survey.
For economists, U-5 and U-6 can help provide some insight into labor market movements. In particular, the spread between U-5 and U-6 can show how quickly businesses are returning to normality after a recession, because it offers a way to gauge changes in the number of hours worked as well as in the number of workers hired.
by Abu Yahya July 15, 2010
Get the U-5 mug.In economics, a policy in which the authorities insist on some permanent, precise guarantee of the value of the local currency to some other thing: a unit measure of gold, the US dollar, the euro, or the pound. Historically, the US dollar had a hard peg to gold from 1946 to 1971, while other currencies in the developed world had a hard peg to the US dollar. Since 1971, most of the world's money is in floating currency (whose relative value is set by the free market).
Nonetheless, advocates of hard pegs frequently downplay the ... difficulties of establishing greater nominal flexibility in fiscal spending and wages...
by abu yahya June 24, 2008
Get the hard peg mug.(FINANCE) market price of a traded stock, commodity, currency, or bond at a specific point in time. For example, right now it's 5 April 2010 08:10 (GMT), and the spot price of WTI crude is $85.56/bbl. Spot price is the price at a specified time on a specific market.
by Abu Yahya April 05, 2010
Get the spot price mug.(STATISTICS) a range of values for which you are x percent confident contains the correct answer. Answers to a statistical question which are ranged from the lowest likely value to the highest; answers outside of this range are highly unlikely.
Presupposes that you are estimating a value based on sample data, and the sample data has a genuinely random variance.
Usually the confidence interval is for a 95% confidence, meaning there is only a 5% probability that the true value is OUTSIDE the interval.
Presupposes that you are estimating a value based on sample data, and the sample data has a genuinely random variance.
Usually the confidence interval is for a 95% confidence, meaning there is only a 5% probability that the true value is OUTSIDE the interval.
ANNA: I've been driving your car for about a month.
JAMES: And what you think is the MPG?
ANNA: It's probably about 25 MPG, with a 95% confidence interval of 19.5 to 32 MPG.
JAMES: Holy cow! Any Prussians in your family tree?
JAMES: And what you think is the MPG?
ANNA: It's probably about 25 MPG, with a 95% confidence interval of 19.5 to 32 MPG.
JAMES: Holy cow! Any Prussians in your family tree?
by Abu Yahya April 23, 2010
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