Reverse Take-Over

Reverse Take-Over - Reverse Take-Over is the practice of one company or, corporation buying out a larger company or corporation. The company or, corporation bought out can be a private company or a public company. The purchasing of a public corporation or, company does not stop the stock security from trading on the Stock Exchange. A privately owned company now has the advantage of gaining a listing on the Stock Exchange. It will put its own management team in place and, rename the public corporation. Reverse Take-Over is a rare practice but it has occurred in the past and, is a noted practice.