BLANCH HOLDING Meaning and
Definition
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Blanch holding is a term used in the field of finance and investments, specifically in the context of convertible securities. It refers to the practice of temporarily withholding the conversion privilege of a convertible security, such as a bond or a preferred stock.
When a security has been blanch held, the investor is prevented from converting it into another form of security, typically common stock, for a predetermined period of time. This restriction is often imposed by the issuer of the security, as it allows them to maintain control over the capital structure of the company.
By implementing a blanch holding period, the issuer can dictate when and under what conditions the conversion can occur. This can be advantageous for the company, especially when it wants to manage its capital structure more effectively, protect existing ownership interests, or control dilution of existing equity.
Blanch holding periods are commonly established when a company anticipates significant changes in its operations or financial condition. It allows the issuer to assess the potential impact of these changes and determine whether conversion is in the best interest of the company and its shareholders.
Overall, blanch holding acts as a mechanism to temporarily restrict the conversion rights of a convertible security, providing the issuer with greater control over the capital structure and facilitating strategic decision-making.
Common Misspellings for BLANCH HOLDING
- vlanch holding
- nlanch holding
- hlanch holding
- glanch holding
- bkanch holding
- bpanch holding
- boanch holding
- blznch holding
- blsnch holding
- blwnch holding
- blqnch holding
- blabch holding
- blamch holding
- blajch holding
- blahch holding
- blanxh holding
- blanvh holding
- blanfh holding
- blandh holding
Etymology of BLANCH HOLDING
The term "Blanch holding" does not have a specific etymology as it appears to be a combination of two words, "Blanch" and "holding", that have different origins.
1. "Blanch":
The word "Blanch" has Old French origins and can be traced back to the Latin term "blancus" meaning "white". It originally referred to the process of making something white or pale by removing color or covering it. Over time, the term developed various meanings related to lightness, brightness, or the absence of color.
2. "Holding":
The word "holding" derives from the Old English word "haldan" which means "to grasp, to keep, to possess". It is also related to the Old High German term "haltan" and the Gothic term "haldan". The usage of "holding" expanded to include the concept of ownership or control over something.
Similar spelling word for BLANCH HOLDING
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