Vocabulary

Study the following vocabulary.

Mergers and acquisitions

merger – the union of two or more companies or corporations

acquisition – the purchase of one company or corporation by another

parent company – the controlling company or corporation in a conglomeration

conglomerate – a corporation that is made up of several different companies in diversified fields

subsidiary – a company or corporation owned by another

hostile takeover – an unwelcome acquisition of one company by another

stake – the share (or percentage of ownership) that one investor or investment group has in a company(also referred to as "an interest" or "a holding")

majority interest – when more than 50% of the shares of a company are owned by one investor or investment group, conveying control over how the company is run(also called a "controlling interest")

joint venture – when two companies work together (either under separate names, or as one new company), in a particular area to derive mutual benefit

to diversify – to spread out business activities or investments