Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

In Specie

What it is:

In specie is a Latin term describing the provision of an asset in its physical form rather than in the cash value of the asset.

How it works (Example):

Let's say Company XYZ wants to purchase Company ABC for $10 million. Company XYZ doesn't have $10 million of cash laying around, but it needs to give Company ABC something worth $10 million. It decides to give Company ABC 1 million shares of Company XYZ stock, which are worth $10 million. Company XYZ is paying Company ABC in specie.

Why it Matters:

In specie payments usually happen in the business world if a company doesn't have cash available.