posted on 06-06-2019

In Specie

Updated October 1, 2019

What is In Specie?

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 Does In Specie Work?

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 Does In Specie Matter?

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