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What is a Merger?
A merger is the voluntary melding of two companies into one, when the owners believe the change is mutually beneficial.
A merger could happen between two companies that were competitors, called a horizontal merger, or between companies who are part of the same supply chain, called a vertical merger. A merger between two companies who are based in the same industry but serve different markets could also be called a market extension.
Similarly, a concentric merger is one in which the management and technology centers of two companies in distinct industries are consolidated to capitalize on economies of scale. The same could be said for conglomerate style mergers which bring completely unrelated companies together under one roof.
Shareholders of the companies who have merged can exchange their old stock for the stock of the newly formed company. If a merger agreement is not met, an acquisition may take place, in which a financially stronger company will purchase the smaller or weaker one.
Mergers and Acquisitions (M&A) is an area of study and practice unto itself, and many professionals in the business and finance industry work solely in this sphere.
What is a Hostile Takeover?
What does 'Poison Pill' Mean?
What are Mergers and Acquisitions (M&A)?
SEP and SIMPLE IRAs
What are the Vesting Rules for My Money Purchase/Profit Sharing Plan?
Different plans will have different vesting schedules, within regulatory guidelines and, the IRS imposes certain rules
What are the Withdrawal Rules From My 457 Plan?
Unlike 401(k)s, you are allowed to take money out of a 457 Plan before the age of 59½ without a 10% withdrawal penalty
What Should I Do With a Lump-Sum Distribution From My Cash-Balance Plan?
Lump Sum distributions can allow you to invest according to your preferences, but could also be spent in a short period
What is the Fiduciary Standard?
The Fiduciary Standard stipulates that an advisor must place the client’s best interests first
What are Asset-Backed Securities?
The assets within the ABS generally tend to consist of different kinds of debt receivables, such as credit cards...
What is IRS Publication 535, Business Expenses?
Publication 535 is a useful guide which enumerates most of the possible business expenses that can be deducted
What is the Descending Triangle (Bearish) Pattern?
The Descending Triangle pattern has a horizontal bottom which represents the support level, and a down-sloping top line
What is Accrual Rate?
Accrual Rate is the rate at which a nominal interest rate is credited to an account that will be paid out at a later time
Can I Withdraw Money From My Pension Plan?
In general, you can’t withdraw money from a Pension Plan before you retire