Skip to main content
Stocks

Reverse Takeover (RTO)/Backdoor Listing

In the world of finance, a reverse takeover or backdoor listing is a complex process involving the issuance of securities by a listed company to parties who are transferring securities or other assets into the listed company. This results in a change of control of the listed company and the new security holders owning more than 50% of the voting securities. This can be achieved through various transactions such as a business or asset acquisition, an amalgamation, or a plan of arrangement. It is important to note that the listing of securities through a reverse takeover is considered a new listing, bringing with it its own set of implications.

Related terms

Ex Right

Understand the meaning and definition of Ex Right in the context of stock market, trading, and investments.

MORE
Gross Profit

Understand the meaning and definition of Gross Profit in the context of stock market, trading, and investments.

MORE
Convertible Bond

Understand the meaning and definition of Convertible Bond in the context of stock market, trading, and investments.

MORE
Screening

Understand the meaning and definition of Screening in the context of stock market, trading, and investments.

MORE
Reverse Stock Split

Understand the meaning and definition of Reverse Stock Split in the context of stock market, trading, and investments.

MORE
Bought Deal

Understand the meaning and definition of Bought Deal in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91