True-up payment

Financial figures - pricing.

A payment to align a total purchase price - or other payment - with a financial figure calculated with greater accuracy, based on fuller, more recent and better information.

Also known as a true-up.

True-up payment example

[Share buyback] pricing models include:

(1) VWAP guarantee: the company always pays VWAP for the shares. A true-up payment is made at the end of the programme to cover the difference between actual amount paid and the VWAP price...

Share buybacks: what treasurers need to know - Lucy Reeve, corporate partner, Linklaters LLP - The Treasurer - Issue 4 of 2024, p38.

See also

• Benchmark
• Broker
• Buyback
• Equity share
• True-up
• Volume-weighted average price (VWAP)