A legal clause or condition contained within a contract that requires or prevents either one or both parties to perform a particular requirement by some specified time. Specified requirements can include, but are not limited to, sunset, soft call, anti-dilution, and anti-greenmail provisions.

Provisions were created to protect the interests of one or both parties named in a contract or legal document. For example, the anti-greenmail provision contained within some companies' charters protects shareholders from the board wanting to pass stock buybacks. Although stock buybacks can be a good thing for shareholders, some buybacks allow board members to sell their stock to the company at inflated premiums.

Investment dictionary. . 2012.


Look at other dictionaries:

  • Provision — Provision …   Deutsch Wörterbuch

  • provision — [ prɔvizjɔ̃ ] n. f. • 1316 aussi « prévoyance, précaution »; lat. provisio, de providere → pourvoir I ♦ Cour. 1 ♦ Réunion de choses utiles ou nécessaires à la subsistance, à l entretien ou à la défense. ⇒ approvisionnement , réserve, stock.… …   Encyclopédie Universelle

  • provision — pro‧vi‧sion [prəˈvɪʒn] noun 1. [uncountable] the act of providing something that someone needs: • the provision of childcare facilities at work • provision for people with disabilities 2. make provision( s) to make plans for future needs: make… …   Financial and business terms

  • provision — pro·vi·sion /prə vi zhən/ n: a stipulation (as a clause in a statute or contract) made beforehand Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. provision …   Law dictionary

  • provision — Provision. s. f. Fourniture des choses qui se consument dans une maison, ou qui sont necessaires dans une place pour la deffense ou pour l entretien de la garnison. Grande provision. bonne provision. provision de vins, de bleds, de sel &c. faire… …   Dictionnaire de l'Académie française

  • provisión — sustantivo femenino 1. (no contable) Acción y resultado de proveer: Esa librería se encarga de la provisión de material del colegio. La expedición al Aconcagua se dedica esta semana a hacer provisión de todo el material necesario. 2.… …   Diccionario Salamanca de la Lengua Española

  • Provision — may refer to:* Provision (Accounting), a term for liability in accounting * Provision (musical group), a Texas synthpop band * Provision (military), food and other supplies needed in field * [ Provision] (commercial), free… …   Wikipedia

  • Provision — Sf std. (16. Jh.) Entlehnung. Entlehnt aus it. prov(v)isione, prov(v)igione, dieses aus l. prōvīsio ( ōnis) Vorsorge, Vorkehrung , zu l. prōvidēre (prōvīsum) Vorsorge tragen, im voraus besorgen , zu l. vidēre sehen und l. prō .    Ebenso nndl.… …   Etymologisches Wörterbuch der deutschen sprache

  • Provision — Pro*vi sion, n. [L. provisio: cf. F. provision. See {Provide}.] 1. The act of providing, or making previous preparation. Shak. [1913 Webster] 2. That which is provided or prepared; that which is brought together or arranged in advance; measures… …   The Collaborative International Dictionary of English

  • Provision — Pro*vi sion, v. t. [imp. & p. p. {Provisioned}; p. pr. & vb. n. {Provisioning}.] To supply with food; to victual; as, to provision a garrison. [1913 Webster] They were provisioned for a journey. Palfrey. [1913 Webster] …   The Collaborative International Dictionary of English

  • provision — (n.) late 14c., providing beforehand (originally in ref. to ecclesiastical appointments made before the position was vacant), from O.Fr. provision (early 14c.), from L. provisionem (nom. provisio) foresight, preparation, from providere look ahead …   Etymology dictionary

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