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LSDefine

Simple English definitions for legal terms

warehousing

Read a random definition: Reversion

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

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18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
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im premed idk why im here
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we’re like cool and sexy and fun I get it
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true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
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