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Yeah, in some case it is considered as a means for raising additional capital but only in the case when one of the companies is financially strong then such a merger is profitable and according to activetrader-links.com if two companies with same strengths or weaknesses do a merger then such a merger will be in vain.
What else can I help you with?
What is capital raising?
Capital raising is the act of obtaining any form of capital in the capital structure, whether debt or equity. References: <a href="http://www.pegasusics.com/capital-raising.php">Capital Raising</a>
What does all-equity mean?
The meaning of an all-equity firm is one that has raised its entire capital through the sale of shares. This is form of raising capital is known as equity financing.
Is capital considered an asset, liability, or equity on a company's balance sheet?
Capital is considered equity on a company's balance sheet.
Which element in financial statements includes additional paid-in capital?
equity
Is additional paid in capital refers to a firm's retained earnings?
Additional paid in capital (or APIC) is a component of the shareholders equity section of the balance sheet. Retained earnings is a separate component of shareholders equity.
Where on the balance sheet is additional paid-in capital recorded?
Additional paid-in capital is recorded on the balance sheet under the shareholder's equity section.
What part of the elements of financial statements does additional paid-in capital belong to?
equity
The stockholders' equity section is usually divided into what three parts?
capital stock, additional paid-in capital, retained earnings
Equity sources of corporate fund raising?
equity sources of corporate fund raising
Does additional paid-in capital belong in a balance sheet?
All kind of capital is related to and shown under equity section of balance sheet.
Types of working capital?
Equity Capital,Debt Capital,Specialty Capital,Sweat Equity
What transaction will increase equity and decrease equity?
A transaction that increases equity is when a company issues new shares of stock, as this brings in additional capital from investors. Conversely, equity decreases when a company pays dividends to shareholders, as it distributes retained earnings and reduces the overall equity in the business.
