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Oct 1, 2019 · Finally, one non-financial method of a poison pill is to stagger the election of the board of a company, causing the acquiring company to face a hostile board for a prolonged period of time. In some cases, this delay in gaining control of the board (and therefore the votes necesarry to approve certain key actions) is a sufficient deterrent for a takeover attempt.
Mar 16, 2021 · Takeovers can create a bigger, more competitive, more cost-efficient entities. This synergy -- that is, the idea that the two companies together are more valuable to the shareholders than they are apart -- is elusive, but it is what justifies most takeovers. After all, acquirers always have the much harder option of trying to 'grow their own ...
Sep 29, 2020 · Blank check preferred stock can act as a safety mechanism from unwanted takeovers. As well, companies can use the blank check preferred stock to quickly raise capital without awaiting shareholder approval. However, given the powers that must be entrusted to the board of directors in order to issue the shares, investors should carefully monitor ...
Oct 1, 2019 · For companies being purchased, the futures for management, employees, and investors can be in doubt as control of the company is relinquished to another authority (i.e. the purchasing company). In this respect, anti-takeover measures protect a company's autonomy and market competitiveness. An anti-takeover measure is a precautionary strategy ...
Nov 9, 2024 · Purchasing Power. Pure Yield Pickup Swap. Put Bond. Put Option. Put-Call Parity. Put/Call Ratio. Putable Bond. Pyramiding. InvestingAnswers' glossary of financial definitions and business terms that begin with the letter "P".
Oct 7, 2020 · Also called 'articles of incorporation' or a 'certificate of incorporation,' a corporate charter is a legal document that sets forth a corporation 's basic information, such as its location, profit/nonprofit status, board composition and ownership structure. A corporate charter is not the same as bylaws, which set forth the rules for the ...
Sep 29, 2020 · To keep their interests top priority, shareholders may offer the following examples of agency costs such as: paying bonuses to management if/when share prices increase. making management’s salaries partial shares in the company. If incentive plans work correctly, these agency costs will be lower than costs incurred by management acting in ...
Sep 16, 2020 · A make-whole call provision ensures that bondholders aren't left out in the cold if a borrower decides to repay bonds early. This is particularly valuable to income investors who depend on the cash flows from coupon payments. However, make-whole provisions also deter companies from paying off bonds early, because the costs of making those make ...
Aug 12, 2020 · It is important to note that in many cases these formulas do not conform to generally accepted accounting principals (GAAP). For example, the negative covenant may include leases in a debt-limit calculation, or it may consider capital leases as an expense. As a result, it is very important that borrowers scrutinize covenants before borrowing.
Oct 1, 2019 · Drug dealing is one of the most prominent black markets in the United States. In this black market, people buy and sell drugs knowing that such activity is usually illegal and that possessing the products themselves is usually illegal. Regardless, the demand for drugs is high enough to trump the law, though people usually attempt to conceal ...
