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Takeover Terms Explained

Take possession of all the outstanding shares, assets, and debts of another company.

Average revenues per user.

Common Shares:
Represents ownership in a publicly traded company. Common shares may be traded on a stock exchange for a given market price.

The amount by which the purchase price exceeds the fair market value of net assets acquired.

Hostile Takeover: 
A company that purchases an entire other company is considered a hostile takeover. The company that acquired the other will retain its name.

The amalgamation of two companies which usually takes on a new name. Any assets and liabilities will be combined and as a result the company will operate with a combined set of financial statements.

Preferred Shares:
Security that pays a dividend over time. When a company goes bankrupt, preferred shares are payed off before common shares.

Statements that are not yet confirmed to be true or untrue.

Making predictions based on unfounded knowledge. E.g. Buying oil because one thinks the price will go to 100$/barrel is considered speculation.

Any talks between investors and the general public about a given takeover deal that is about to occur.

When a larger company acquires a smaller company.

When a company tries to buy out another company for a lower price than what the market is valuing it at.