Term:
Market for corporate control
Definition:

In an economic system where the voting stock (shares) of companies are publicly bought and sold through the mechanism of a stock exchange, the term "market for corporate control" refers to the process by which ownership and control of companies is transferred from one group of investors and managers to another. The share prices of companies publicly listed on the stock exchange are often viewed as a "barometer" indicating the extent to which management is efficiently operating the corporation and maximizing shareholder wealth.

Domain:
Finance
Source:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993
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