To install click the Add extension button. That's it.

The source code for the WIKI 2 extension is being checked by specialists of the Mozilla Foundation, Google, and Apple. You could also do it yourself at any point in time.

Kelly Slayton
Congratulations on this excellent venture… what a great idea!
Alexander Grigorievskiy
I use WIKI 2 every day and almost forgot how the original Wikipedia looks like.
Live Statistics
English Articles
Improved in 24 Hours
Added in 24 Hours
What we do. Every page goes through several hundred of perfecting techniques; in live mode. Quite the same Wikipedia. Just better.

Special situation

From Wikipedia, the free encyclopedia

A special situation in finance is an atypical event which has the potential to alter the future course of a business, materially impacting the company's value. The notion covers corporate restructuring and corporate transactions such as spin-offs, share repurchases, security issuance/repurchase, asset sales, or other catalyst-oriented situations. A conflict of shareholders is also considered a special situation.

To take advantage of special situations, a hedge fund manager must identify an upcoming event that will increase or decrease the value of the company's equity and equity-related instruments.[1]


Generally, the special situations investing is considered to be a subclass of alternative investments. Special situations are very risky and challenging as businesses go not as usual. They require specialized expertise; determining the best price can be difficult. In addition, profits are far from assured because prices might increase as more money chases deals.[2] Therefore, such situations are monitored and sought after by hedge funds, for they provide interesting investments opportunities. Private equity funds and other institutional investors also incorporate special situation investments as part of their strategies.


There is also a definition of special situation by Benjamin Graham:

First, just what is meant by a "special situation"? Convention has not jelled sufficiently to permit a clear-cut and final definition. In the broader sense, a special situation is one in which a particular development is counted upon to yield a satisfactory profit in the security even though the general market does not advance. In the narrow sense, you do not have a real “special situation” unless the particular development is already under way.[3]

Classes of special situations

In his well-known book Security Analysis, Benjamin Graham divides special situations into six classes:[4]

  • Class A: Standard arbitrages, based on a reorganization, recapitalization or merger plan
  • Class B: Cash payout, in recapitalization or mergers
  • Class C: Cash payments on sale or liquidation
  • Class D: Litigated matters
  • Class E: Public utility breakups
  • Class F: Miscellaneous special situations

See also


  1. ^ "HFR I Strategy Definitions". Hedge Fund Research Inc. Retrieved 17 March 2011.
  2. ^ Alternative Investment Funds Filling Void for ‘Special Situations’
  3. ^ Benjamin Graham on Special Situations
  4. ^ Benjamin Graham, "Special Situation Investing", in Security Analysis, 1951 edition, pp 729-734.

External links

This page was last edited on 19 January 2021, at 03:43
Basis of this page is in Wikipedia. Text is available under the CC BY-SA 3.0 Unported License. Non-text media are available under their specified licenses. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc. WIKI 2 is an independent company and has no affiliation with Wikimedia Foundation.