Definition of Buyout:

  1. Purchase by a publicly traded firm of its outstanding (held by the public) stock to thwart a takeover attempt, or to take the firm off the stockmarket for converting it into a private company.

  2. Purchase of the controlling stock or shares of a firm by its own management. If borrowed funds are used in the buyout, it is called a leveraged buyout..

Meaning of Buyout & Buyout Definition