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Finance Dictionary and Glossary of Investment Terms
Safe harbor
Definition 1.
Often used in risk arbitrage as a form of shark repellent. A target company acquires a business so onerously regulated that it makes the target less attractive, giving it, in effect, a safe harbor.
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Definition 2.
The ability of a company's management to discuss in good faith a company's prospects and financial projections with analysts and investors without fearing litigation.
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Definition 3.
The "Safe Harbor for Forward-Looking Information" allows company management to discuss in good faith a company's prospects and financial projections with analysts and investors without fearing litigation. (From the Private Securities Litigation Reform Act of 1995.)
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Definition 4.
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent where a target company acquires a business that is so poorly regulated that the target itself is less attractive. In effect, this gives the target company a "safe harbor." 3. An accounting method that avoids legal or tax regulations and allows for a simpler (usually) method of determining a tax consequence than is available following the precise language of the tax code.
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