BROWSE

In Play

What is 'In Play'

A slang phrase used to describe a firm who has become a potential takeover target or has put itself up for sale. Once a bid is made, a company is put "in play" and will often attract additional bidders.

Explaining 'In Play'

When a firm becomes a potential takeover target, its share price will typically increase on the expectations of being bought out. For example, in the late 1980s, management at RJR Nabisco felt the share price was unjustifiably low, so it made a bid to take the company private. This bid put the company in play, soliciting numerous other bids, sending RJR Nabisco's share price through the roof.


Further Reading


Welfare economics of “Financial Fair Play” in a sports league with benefactor owners
journals.sagepub.com [PDF]
With European soccer leagues in mind, a novel model of club owner objectives nests standard profit (and win) maximization, but adds benefactor behavior where owners inject personal funds to increase their team's quality. A “generosity” parameter differentiates …

Trends in park tourism: Economics, finance and managementTrends in park tourism: Economics, finance and management
www.tandfonline.com [PDF]
With European soccer leagues in mind, a novel model of club owner objectives nests standard profit (and win) maximization, but adds benefactor behavior where owners inject personal funds to increase their team's quality. A “generosity” parameter differentiates …

An empirical comparison of published replication research in accounting, economics, finance, management, and marketingAn empirical comparison of published replication research in accounting, economics, finance, management, and marketing
www.sciencedirect.com [PDF]
With European soccer leagues in mind, a novel model of club owner objectives nests standard profit (and win) maximization, but adds benefactor behavior where owners inject personal funds to increase their team's quality. A “generosity” parameter differentiates …

Method of playing a game of economics and financeMethod of playing a game of economics and finance
patents.google.com [PDF]
With European soccer leagues in mind, a novel model of club owner objectives nests standard profit (and win) maximization, but adds benefactor behavior where owners inject personal funds to increase their team's quality. A “generosity” parameter differentiates …

The virtues and vices of equilibrium and the future of financial economicsThe virtues and vices of equilibrium and the future of financial economics
onlinelibrary.wiley.com [PDF]
With European soccer leagues in mind, a novel model of club owner objectives nests standard profit (and win) maximization, but adds benefactor behavior where owners inject personal funds to increase their team's quality. A “generosity” parameter differentiates …

Implications of behavioural economics for financial literacy and public policyImplications of behavioural economics for financial literacy and public policy
www.sciencedirect.com [PDF]
With European soccer leagues in mind, a novel model of club owner objectives nests standard profit (and win) maximization, but adds benefactor behavior where owners inject personal funds to increase their team's quality. A “generosity” parameter differentiates …



Q&A About In Play


What happens after other bids come in for an "in play" company?

The share price of an "in-play" company will often go through the roof.

What is the social science that studies how people interact with value?

Economics.

How do you define a good or service in terms of economics?

A good or service is anything that can be used to satisfy any human want or need.

What are some other things that economics studies?

Economics also studies how individuals make choices in situations where they have to choose between different alternatives.

Who typically makes the first bid on a company in play?

The first bid on an "in play" company comes from management.

How do share prices typically react when companies are put in play?

Share prices tend to increase as investors anticipate being bought out.

Why does management make the first bid?

Management wants to take the company private.

What are the three main branches of economics?

The three main branches of economics are microeconomics, macroeconomics, and international trade.

What is a slang phrase used to describe a firm that has become a potential takeover target?

A firm becomes "in play" when it is put up for sale.

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