Hedge Fund Glossary

mfa-logo latham-and-watkins-logo

Accelerated Share Repurchase (ASR)

a method used by an Issuer to buy back its own shares from the market via a dealer. Pursuant to a private agreement between Issuer and dealer, Issuer pays the Notional Amount of the repurchase price to dealer, receives an initial delivery of shares from the dealer and retires up to the notional number of shares received from dealer. Dealer “borrows” the shares delivered to Issuer from the securities lending market for the shares and later covers the borrowing with purchases of shares in the market. At maturity, the parties “true up” the difference between the repurchase price paid by the Issuer and the average share price at maturity. Also referred to as an Accelerated Share Buyback, or ASB.

Hedge Fund Glossary Index ›

Latham & Watkins is pleased to provide our Book of Jargon® — Hedge Funds. The Book of Jargon® — Hedge Funds
is a comprehensive glossary of hedge fund slang, legal and regulatory terminology, and acronyms.

For more information please visit: www.lw.com