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Meaning of schmuck insurance | Babel Free

Noun CEFR B2

Definitions

The situation where an owner sells a company but retains a portion in case the price appreciates in the future.

informal, uncountable

Examples

“The solution? Instead of selling 100% of the business, the seller either keeps a stake, or keeps an option to buy back part of it later. This solution, which was apparently popularized by Time Warner CEO Dick Parsons in the early 2000s ($, WSJ), is known as "schmuck insurance”.”
“In Wall Street parlance this is known as "schmuck insurance," a reference to the rather vulgar Yiddish word that has come to mean the equivalent of "idiot."”

CEFR level

B2
Upper Intermediate
This word is part of the CEFR B2 vocabulary — upper intermediate level.

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