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Financial Terms | |
Conglomerate merger |
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Definition of Conglomerate mergerConglomerate mergerA merger involving two or more firms that are in unrelated businesses.
Related Terms:ConglomerateA firm engaged in two or more unrelated businesses. Horizontal mergerA merger involving two or more firms in the same industry that are both at the same Limitation on merger, consolidation, or saleA bond covenant that restricts in some way a firm's ability to Merger1) Acquisition in which all assets and liabilities are absorbed by the buyer. MergerThe combination of two or more entities into a single entity, usually with one mergerCombination of two firms into one, with the acquirer assuming assets and liabilities of the target firm. Vertical mergerA merger in which one firm acquires another firm that is in the same industry but at another ![]() Horizontal acquisitionMerger between two companies producing similar goods or services. Horizontal analysisThe process of dividing each expense item of a given year by the same expense item in Horizontal spreadThe simultaneous purchase and sale of two options that differ only in their exercise date. 45-Degree LineA line representing equilibrium in the goods and services market, on a diagram with aggregate demand on the vertical axis and aggregate supply on the horizontal axis. High-low-close chartA financial chart usually used to plot the high, low, Indifference curveThe graphical expression of a utility function, where the horizontal axis measures risk and Vertical spreadSimultaneous purchase and sale of two options that differ only in their exercise price. See: Yield curveGraph of yields (vertical axis) of a particular type of security Affirmative covenantA bond covenant that specifies certain actions the firm must take. ![]() Aggregate Production FunctionAn equation determining aggregate output as a function of aggregate inputs such as labor and capital. Budget cycleThe annual period over which budgets are prepared. Business cycleRepetitive cycles of economic expansion and recession. Business CycleFluctuations of GDP around its long-run trend, consisting of recession, trough, expansion, and peak. Cash conversion cycleThe length of time between a firm's purchase of inventory and the receipt of cash cash conversion cyclePeriod between firm’s payment for materials Cash cycleIn general, the time between cash disbursement and cash collection. In net working capital Cash CycleThe length of time between a purchase of materials and collection of accounts receivable generated by the sale of the products made from the materials. Confirmationhe written statement that follows any "trade" in the securities markets. Confirmation is issued cost of production reporta process costing document that Cycle countingThe frequent, scheduled counting of a subset of all inventories, ![]() cycle timethe time between the placement of an order to economic production run (EPR)an estimate of the number equivalent units of production (EUP)an approximation of the number of whole units of output that could have been Expiration cycleAn expiration cycle relates to the dates on which options on a particular security expire. A Factor of ProductionA resource used to produce a good or service. The main macroeconomic factors of production are capital and labor. FirmRefers to an order to buy or sell that can be executed without confirmation for some fixed period. Also, Firm commitment underwritingAn undewriting in which an investment banking firm commits to buy the Firm's net value of debtTotal firm value minus total firm debt. Firm-specific riskSee:diversifiable risk or unsystematic risk. IndustryThe category describing a company's primary business activity. This category is usually determined Intrinsic value of a firmThe present value of a firm's expected future net cash flows discounted by the Lean productionThe technique of stripping all non-value-added activities from life cycle costingthe accumulation of costs for activities that Lifecycle costingAn approach to costing that estimates and accumulates the costs of a product/service over Limitation on merger, consolidation, or saleA bond covenant that restricts in some way a firm's ability to manufacturing cycle efficiency (MCE)a ratio resulting from dividing the actual production time by total lead time; Market cycleThe period between the 2 latest highs or lows of the S&P 500, showing net performance of a Merger1) Acquisition in which all assets and liabilities are absorbed by the buyer. MergerThe combination of two or more entities into a single entity, usually with one mergerCombination of two firms into one, with the acquirer assuming assets and liabilities of the target firm. Neglected firm effectThe tendency of firms that are neglected by security analysts to outperform firms that network organizationa flexible organization structure that Non-production overheadA general term referring to period costs, such as selling, administration and financial expenses. Operating cycleThe average time intervening between the acquisition of materials or services and the final Payroll CycleThe period of service for which a company compensates its employees. Political Business CycleA business cycle caused by policies undertaken to help a government be re-elected. Process flow productionA production configuration in which products are continually Product cycleThe time it takes to bring new and/or improved products to market. product life cyclea model depicting the stages through Production-flow commitmentAn agreement by the loan purchaser to allow the monthly loan quota to be Production overheadA general term referring to indirect costs. Production payment financingA method of nonrecourse asset-based financing in which a specified Production yield varianceThe difference between the actual and budgeted proportions Real Business Cycle TheoryBelief that business cycles arise from real shocks to the economy, such as technology advances and natural resource discoveries, and have little to do with monetary policy. Replacement cycleThe frequency with which an asset is replaced by an equivalent asset. Small-firm effectThe tendency of small firms (in terms of total market capitalization) to outperform the Target firmA firm that is the object of a takeover by another firm. two-bin systeman inventory ordering system in which two Two-bin systemA system in which parts are reordered when their supply in one Two-factor modelBlack's zero-beta version of the capital asset pricing model. Two-fund separation theoremThe theoretical result that all investors will hold a combination of the riskfree Two-sided marketA market in which both bid and asked prices, good for the standard unit of trading, are quoted. Two-state option pricing modelAn option pricing model in which the underlying asset can take on only two Two-tier tax systemA method of taxation in which the income going to shareholders is taxed twice. UNITS OF PRODUCTIONA depreciation method that relates a machine’s depreciation to the number of units it makes each Vertical mergerA merger in which one firm acquires another firm that is in the same industry but at another Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |