What Is a Break Fee? A break fee is a fee paid to a party as compensation for a broken deal or contract failure. Two common situations where a break fee, also referred to as a breakup or termination fee, could apply is if a mergers and acquisitions (M&A) deal proposal is terminated for pre-specified
DEFINITION of Breaking The Syndicate The term “breaking the syndicate” or “breaking syndicate” refers to the dissolution of a group of investment bankers that created a syndicate to underwrite — or price, market and sell — the issue of a particular security. Prior to termination of the agreement, the underwriters must sell the securities at
What Is a Breakout? A breakout refers to when the price of an asset moves above a resistance area, or moves below a support area. Breakouts indicate the potential for the price to start trending in the breakout direction. For example, a breakout to the upside from a chart pattern could indicate the price will
What Is a Breakout Trader? A breakout trader is a type of trader that uses a breakout strategy. This strategy looks for levels or areas that a security has been unable to move beyond, and waits for it to move beyond those levels (as it could keep moving in that direction). When a price moves
What Is a Breakpoint? A breakpoint is the dollar amount for the purchase of a load mutual fund’s shares that qualifies the investor for a reduced sales charge. Breakpoints offer investors a discount for making larger investments. The purchase may either be made in a lump sum or by staggering payments within a specified period of
What Is a Breakpoint Sale? A breakpoint sale is the sale of a mutual fund at a set dollar amount that allows the fundholder to move into a lower sales charge bracket. If an investor is unable to provide the funds needed to qualify for the lower fee at the time of investment, they can
What Is a Breakup Fee? A breakup fee is used in takeover agreements as leverage on the seller against backing out of the deal to sell to the purchaser. A breakup fee, or termination fee, is required to compensate the prospective purchaser for the time and resources used to facilitate the deal. Breakup fees are normally 1% to 3% of
What Is Breakup Value? The breakup value of a corporation is the worth of each of its main business segments if they were spun off from the parent company. It is also called the sum-of-parts value. Key Takeaways Breakup value is an analysis of the worth of each of a large corporation’s distinct lines of
What Is a Breeder’s Insurance Policy? As its name suggests, a breeder’s insurance policy is a type of insurance that caters to the unique risks faced by animal breeders. Because breeders’ livelihoods depend on the health of the animals they breed, this type of insurance is often viewed as an essential business expense that is
What Is Brent Blend? Brent blend is the name of one of two internationally-recognized types of crude oil that are used as benchmarks for prices of crude oil. Brent Blend comes from the North Sea and is considered a light, sweet crude oil. Brent blend is more than half of the crude oil traded internationally
