Dictionary of Banking Terms: take-out
take-out
- trading profit from the sale of a block of securities and purchase of another at a lower price. The difference can be reinvested or taken as profit.
- bid made to the seller of a security intended to buy out his or her position. See also locked market.
- in lending, to pay off a borrower's other creditor, by replacing a short-term loan with a longer maturity loan, taking out the other lender. See also take-out commitment.
