Parking Violation
2020-08-14
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The illegal practice of an acquiring company concealing ownership of the target company by holding stock under a related third party before attempting corporate takeover.
Unlike the parking violations that many of us as drivers commit inadvertently, this type of violation is deliberately hostile. By having a third party hold significant portions of stock, the acquiring company can prepare for a takeover without exceeding certain ownership reporting levels and alerting the target company.