If I reject the tender offer for acquisition of the stock that I own in a company and the company goes private, what happens to my stock?

July 9, 2024 No Comments

A: Since the passing of the Sarbanes-Oxley Act, a significant number of public companies have chosen to go private. The reasons why companies make this choice are as varied as the companies themselves, but the cost of being publicly traded and having to comply with

If the intrinsic value of a stock is significantly lower than the market price, should you avoid purchasing it? Why or why not?

July 9, 2024 No Comments

A: Though a stock with a significantly lower intrinsic value than current market price may indicate the stock is overvalued, this does not necessarily mean that the stock should be avoided. Looking at the disparity between intrinsic value and market price is known in the

In what types of financial situations would credit spread risk be applied instead of default risk?

June 30, 2024 No Comments

A: Default risk and spread risk are the two components of credit risk, which is a type of counterparty risk. Think of default risk as more closely associated with the general conception of counterparty risk: noncompliance with the specifications and terms of a contract. Spread

In what types of financial situations would credit spread risk be applied instead of default risk?

July 7, 2024 No Comments

In what types of financial situations would credit spread risk be applied instead of default risk?

July 9, 2024 No Comments

In which industries are mergers and acquisitions most common?

July 9, 2024 No Comments

A: Mergers and acquisitions are most common in the health care, technology, financial services and retail sectors. In health care and technology, many small and medium-sized companies find it difficult to compete in the marketplace with the handful of behemoths that control the industry. These

In which industries is Average Collection Period most important?

June 30, 2024 No Comments

A: The industries in which average collection period – the median amount of time necessary for a business to recover its receivables – is most important are those in which receivables make up the greatest portion of cash flows. These industries include banks and financial

In which industries is Average Collection Period most important?

July 7, 2024 No Comments

In which industries is Average Collection Period most important?

July 9, 2024 No Comments

Is a deficit in the balance of payments a bad thing?

June 30, 2024 No Comments

A: First, it’s important to distinguish between the balance of payments and the current account. When the terms “trade deficit” or “trade surplus” are used in media, they are almost always references to the current account. The current account is just one part of the

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