In Play

Reviewed by Apoorva | Updated on Sep 28, 2020

In Play Meaning

A firm that has listed itself for sale or is considered a potential takeover target by many bidders is referred to as in play. Initially, there may be a rumour that a company is participating in a potential merger or acquisition or a management buyout.

At this point, the company's shares will be referred to as deal stock; the share price will become very volatile as speculation casts a spell. Upon confirmation on a bid is received, the company is put in play and attracts many more bidders.

Understanding In Play

The share price of a potential takeover target increases based on the expectation that the stock will trade at premium prices during the final purchase of the outstanding shares.

Consider the example of Company A going private due to a hostile takeover attempt. This event put the company in play resulting in a bidding war. Consequently, there was a rise in the offer price, and Company A stole a great deal.

Related Terms

Recent Terms

  • Amortisation

    Amortisation is an accounting strategy used to regularly reduce a loan's book value or an intangible asset's book value over a given period of time.   Read more


  • Rationalisation

    The reorganisation of a firm with the view of enhancing the efficiency of the operation is referred to as the rationalisation.   Read more


  • Profit Centre

    A profit centre refers to a branch, unit, or division of a company which directly adds or which normally adds to the bottom-line or profits of the company as a whole.   Read more


  • Authorised Share Capital

    Authorised share capital is the number of stock units (shares) that a company may issue, as set out in its association memorandum or incorporation papers.   Read more