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Vocabobobo Posted 17 years ago
Vocabulary
A little bit confusing sentence
Hello. I was reading an article, and ran into a sentence which is a little bit confusing to me.
The sentence appears in an article which describes the current situation for the GM, and is as follows: In the deal being cobbled (by the "White House auto task force"), GM's stockholders will be wiped out, replaced as equity owners by the Treasury Department, with 70%, and the United Auto Workers, with 17.5%.
Could anyone explain to me how I should interpret the part in bold (are the Treasury Department and UAW replacing the stockholders, and will be called equity owners hereafter)?
Thank you so much in advance.
The sentence appears in an article which describes the current situation for the GM, and is as follows: In the deal being cobbled (by the "White House auto task force"), GM's stockholders will be wiped out, replaced as equity owners by the Treasury Department, with 70%, and the United Auto Workers, with 17.5%.
Could anyone explain to me how I should interpret the part in bold (are the Treasury Department and UAW replacing the stockholders, and will be called equity owners hereafter)?
Thank you so much in advance.
Top answer
Yes, that's pretty much it. Being pedantic, it's not so much that the Treasury Department and UAW will be "called" equity owners -- they will be the (main) equity owners. In other words, they will own the bulk of the company's shares.
- Yes, that's pretty much it.
- Being pedantic, it's not so much that the Treasury Department and UAW will be "called" equity owners -- they will be the (main) equity owners.
- In other words, they will own the bulk of the company's shares.
- The current shareholders will lose their holding, or most of it anyway (I don't know the exact details of how this would work, but "wiped out" sounds like it's not good news for them).
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1 Answers
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Yes, that's pretty much it.
Being pedantic, it's not so much that the Treasury Department and UAW will be "called" equity owners -- they will be the (main) equity owners. In other words, they will own the bulk of the company's shares. The current shareholders will lose their holding, or most of it anyway (I don't know the exact details of how this would work, but "wiped out" soun
Being pedantic, it's not so much that the Treasury Department and UAW will be "called" equity owners -- they will be the (main) equity owners. In other words, they will own the bulk of the company's shares. The current shareholders will lose their holding, or most of it anyway (I don't know the exact details of how this would work, but "wiped out" soun
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