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Why do firms purchase other corporations when they have a loss tot he acquiring firms stockholders?
Wiki User
∙ 9y ago
Firms may purchase other corporations, even if they themselves have losses because they believe the new firm may have products or processes which will generate new income streams. Some firms are making losses, but they have high financial net-worth.
Wiki User
∙ 9y ago
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Why do firms purchase of other corporations Are they simply paying too much for the acquired corporation?
Some firms might purchase other corporations in the hopes of making a profit. They might buy cheap and sell higher. Some firms might also buy other corporations to buy up the competition in a particular industry.
What kind of business is owned by stockholders?
Corporations Corporations distribute ownership stakes in the form of shares, also called stock. In many private corporations, all of the stock is owned by one person or family. That one person or the family members that own the shares are all shareholders. Public corporations, those firms whose share trade on a public stock exchange (i.e. The New York Stock Exchange, NASDAQ, etc.) are also also owned by the people who own the stock. The distribution of the stock of public corporations is usually much, much larger than of private firms. Many large corporations (i.e. Microsoft, GE, Exxon-Mobil) have more than one million stock holders. All of those businesses are owned by the people who own the stock. The more stock one owns, the more of the business that person owns. As to the kind or type of business owned by stockholders, the short answer is "for-profit" businesses. Almost any kind of for-profit business can use the corporate form of ownership. In the past, there were strict requirements issued by the stock exchanges that businesses had to meet in order to list their shares. Those requirements included a certain level of revenue, a history of profitability and/or a threshold of assets owned. In the "dot.com" era, many of those requirements were set aside as very small companies who had yet to make a profit needed access to the capital markets to raise money to grow. When markets for those firms products and services did not materialize, the small size of the businesses and lack of tangible assets left many of those stocks worthless which is part of the reason the burble burst in 2000-2002.
What is corporate banking its functions?
Banking services for large corporations or firms. This type of banking is designed to deal with major financial transactions that do not generally a definition of financing it is (often unsecured), cash management, and other banking services custom-tailored for large firms. Usually the definition of the business of banking for the purposes of corporate banking, directed at large business entities; private banking
What exactly is a mortgage note buyer?
Basically, these are people or investment firms or banks who purchase a homeowner's mortgage in the hopes of making a profit. Depending on the housing economy this can be a good or bad investment.
What competitive environmental forces influence the firms strategy?
The competitive environmental forces influence the firms customers, rival firms, new entrants, substitutes, and supplies.
Why do firms purchase other corporations?
help
Why do firms purchase of other corporations Are they simply paying too much for the acquired corporation?
Some firms might purchase other corporations in the hopes of making a profit. They might buy cheap and sell higher. Some firms might also buy other corporations to buy up the competition in a particular industry.
An equity issue sold to the firms existing stockholders is called?
A general cash offer
Which category includes the largest number of firms?
corporations
Why do some banks spell it bank and some spell it banc?
The marketing departments of some bank corporations believe that using the French spelling "banc" will convey a sense of internationalism and trustworthiness. Other institutions just inherited the name from merging with or or acquiring international financial firms.
Do lawyers get pension?
Depends on who they worked for. Some firms and many corporations have pension funds.
In a free market economy firms purchase from households?
In a free market economy, firms purchase factors of production such as labor, from households.
Where do corporate lawyers work?
in corporations and companies. in other words, they work for legal persons other than law firms (firms specialized in legal issues)
Firms purchase inputs for production from households in the .?
hahahaha
What was the New Jersey Holding Company Act?
This allowed corporations to bring previously independent firms under unified control
Which corporations does the Colorado Secretary of State typically have relations with?
The Colorado Secretary of State is responsible for all incorporations in the state of Colorado. Therefore, they will have relations with all firms that are incorporated in Colorado from small firms to large ones.
What do development firms do?
Development firms speculate on an amount of land to purchase--based on salability--and develop accordingly, in order to maximize profit
