- Exit Strategy
- 1. The method by which a venture capitalist or business owner intends to get out of an investment that he or she has made in the past. In other words, the exit strategy is a way of "cashing out" an investment. Examples include an initial public offering (IPO) or being bought out by a larger player in the industry. Also referred to as a "harvest strategy" or "liquidity event".
2. In the context of an active trader, a plan as to when a trade will be closed out.
1. It's more difficult for a VC or entrepreneur to get money out of an investment because they are generally dealing with private companies. When a firm is private, the shares cannot be sold nearly as easily as when the firm is publicly traded on a stock exchange. So, even though a private startup firm could be worth millions of dollars, the VC/entrepreneur has little access to this wealth. You can think of the exit strategy as the first opportunity to trade an illiquid asset (shares in a private firm) for a very liquid asset (cash).
2. For example, a trader might set a stop-loss order to exit a trade if a stock drops a certain percentage.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
exit strategy — UK US noun [countable] [singular exit strategy plural exit strategies] a plan that allows you to stop being involved in a situation without causing any harm or disadvantage to yourself Thesaurus: preparations and plans … Useful english dictionary
exit strategy — exit strategies N COUNT: usu sing In politics and business, an exit strategy is a way of ending your involvement in a situation such as a military operation or a business arrangement. The fear is that we have no exit strategy from this conflict … English dictionary
exit strategy — exit ,strategy noun count a plan that allows you to stop being involved in a situation without causing any harm or disadvantage to yourself … Usage of the words and phrases in modern English
Exit strategy — An exit strategy is a means of escaping one s current situation, typically an unfavourable situation. An organization or individual without an exit strategy may be in a . At worst, an exit strategy will save face; at best, an exit strategy will… … Wikipedia
exit strategy — UK / US noun [countable] Word forms exit strategy : singular exit strategy plural exit strategies a plan that allows you to stop being involved in a situation without causing any harm or disadvantage to yourself … English dictionary
exit strategy — /ˈɛgzət strætədʒi/ (say egzuht stratuhjee) noun a plan for the termination of a project, especially in a military or business context, which meets the objective of maintaining political or financial security … Australian English dictionary
Exit Strategy (album) — Infobox Album Name = Exit Strategy Type = Album Artist = Astronomy Class Released = September 30, 2006 Recorded = Tardis Studios Genre = Australian hip hop Length = Label = Elefant Traks Producer = Reviews = * Pop Matters rating 10|5… … Wikipedia
Exit strategy (disambiguation) — An exit strategy is a plan to get out of a troublesome .Exit Strategy may also refer to:*Exit Strategy (Charmed episode), an episode in the third season of the TV Series Charmed *Exit Strategy (Arrested Development episode), an episode in the… … Wikipedia
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Exit Strategy of the Soul — Infobox Album Name = Exit Strategy of the Soul Type = Studio album Artist = Ron Sexsmith Released = 2008 Recorded = Genre = Pop folk, Rock Length = Label = Universal Records Producer = Reviews = * World of Music Rating|4.5|5 [cite… … Wikipedia