Top-ups

Short description: Type of stock repurchase program

In business, a top-up is a variation of a company's stock repurchase program for common shareholders.[1] Although this buyback reduces voting interest of its shareholder, the shareholder may subsequently increase its holdings, called a top-up. For example, if company A holds 20% of voting power, and company B reduces this power to 10%, company A may increase its voting power to 15% within 6 months.

In the event of a hostile takeover attempt, a target company can use a top-up to increase time for enhancing takeover defenses.

## See also

* Economics
* Mergers and Acquisitions
* Microeconomics
* Takeover
* Industrial organization

## References

1. ↑ "Top-ups definition" (in en). https://capital.com/top-ups-definition.

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