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Takeover Terms Explained

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

ARPU
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.

Goodwill: 
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.

Merger: 
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.

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

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

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

Takeover:
When a larger company acquires a smaller company.

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