Related Words

Merger: A type of structural integration that occurs when two or more separate providers are legally joined.

Reverse Merger: In a reverse merger, a privately held company purchases a publicly held company and, as part of the new entity, becomes public without an initial public offering (IPO). It’s described as rev . . . View Full Definition

Antimerger Clause: A clause in a mortgage or deed of trust specifying that the senior lienholder will retain lien priority in the event of a merger.

Vertical Merger: A form of technical charting that shows the high, low, and closing prices of a stock or a market on each day on one vertical line with the closing price indicated by a short horizontal mark.

Conglomerate Merger: A firm engaged in two or more unrelated businesses.

Horizontal Merger: The process of dividing each expense item of a given year by the same expense item in the base year. It allows assement of changes in the relative importance of expense items over time and t . . . View Full Definition

Statutory Merger: An investment that a trustee is authorized to make under state law.

Limitation On Merger, Consolidation, Or Sale: A bond covenant that restricts in some way a firm's ability to merge or consolidate with another firm.

Short Interest Theory: Total number of shares of a security that investors have sold short and that have not been repurchased to close out the short position. Usually, investors sell short to profit from price dec . . . View Full Definition

Scorched-Earth Policy: Often used in risk arbitrage. Any technique a company that has become the target of a takeover attempt uses to make itself unattractive to the acquirer. For example, it may agree to sell off . . . View Full Definition