Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

warehousing

Read a random definition: Interstate Commerce Commission

A quick definition of warehousing:

Warehousing is when a mortgage banker holds onto mortgages until the market gets better and they can sell them for a higher price. It can also refer to a company giving notice to big investors about a plan to buy another company's stock before the public knows, so the investors can buy the stock before the price goes up. This is called a tender offer.

A more thorough explanation:

Definition: Warehousing refers to two different practices:

  1. When a mortgage banker holds onto mortgages until the resale market improves.
  2. When a corporation gives advance notice of a tender offer to institutional investors, who can then buy stock in the target company before public awareness of the takeover inflates the stock's price.

Example 1: A mortgage banker holds onto a portfolio of mortgages instead of selling them immediately. This is because the resale market is currently unfavorable, and the banker believes that they can get a better price for the mortgages in the future.

Example 2: A corporation plans to make a tender offer to acquire another company. Before making the offer public, the corporation gives advance notice to institutional investors. These investors can buy stock in the target company before the public becomes aware of the takeover, which can cause the stock price to increase.

Both examples illustrate the concept of warehousing, which involves holding onto assets until the market conditions are more favorable. In the case of mortgages, the banker is waiting for a better resale market. In the case of the tender offer, the corporation is trying to avoid inflating the stock price before they can acquire the target company.

warehouse-to-warehouse cover | warfare

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.