# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Inchoate

Written By
Paul Tracy
Updated January 16, 2021

What is Inchoate?

Inchoate is a legal term indicating that a transaction or activity has been discussed or even agreed upon but is not final or is still incomplete.

How Does Inchoate Work?

Let's say Company XYZ wants to buy Company ABC. The two companies agree to the price and other terms, and now it's a matter of time until the paperwork is completed, making the transaction final. During that time -- that is, after the companies agree but before the transaction is finalized -- the deal is inchoate.

Why Does Inchoate Matter?

In the merger world, lots of time can pass between when a deal is announced and when it closes. During this time, the deals are inchoate and can often experience several bumps in the road as the companies do their due diligence on each other and implement the terms of the deal.

Real estate deals are also often inchoate and transactions can often fall apart before they reach the closing table.

Ask an Expert about Inchoate
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Inchoate.
Be the first to ask a question

If you have a question about Inchoate, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Inchoate, then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about Inchoate

By submitting this form you agree with our Privacy Policy

Share
close
Don't Know a Financial Term?
Search our library of 4,000+ terms