Special situation investing is quite a broad term, and it encompasses a lot of different types of investments. Often the definition includes spin-offs, companies doing share repurchases, companies doing rights offerings, companies engaged in mergers and acquisitions, companies liquidating their operations, chapter 11 cases, companies involved with big lawsuits, going private transactions, and companies under siege by activists. But there are more types of special situations. The focus tends to be more on the corporation transforming its capital structure, organization, or the taking place of an event as opposed to a focus on operations.