General
stub stock
What does stub stock mean?
After a leveraged recap or LBO, most of the cap structure is debt. What's left of the equity is the stub — high-risk, high-reward, and prone to either ten-bagging or going to zero.
"He bought the stub stock after the recap and rode it from two bucks to twenty."
Frequently asked questions
What is stub stock?
Stub stock is the thin sliver of equity left over after a company loads itself up with debt, such as after a leveraged buyout.
How do you use stub stock in a sentence?
After the buyout, shareholders were left holding little more than stub stock.
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