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Acquisition
Leveraged Buyout
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Venture Capital

Merger
Term category: General Business
In 10 words or less:  When one company purchases another by offering them cash and/or shares of stock.

Definition: When one company purchases another. The two companies come together to become one.

StockJargon Advice: Two companies usually agree to merge when they feel that they can do something together that they can't do on their own.

For example, AOL and Time Warner merged a few years back in hopes that they could both gain something. AOL wanted access to Time Warner's cable network. Time Warner wanted access to AOL's users (to promote movies and other Time Warner products) as well as AOL's extensive internet content.

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Related Books

The Complete Guide to Mergers and Acquisitions by Timothy Galpin
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