Home > Skills > Page 2

Skills

What is a Merger? Definition, Types, and Examples

A merger takes place when two companies combine to form a new company. Companies merge to reduce competition, increase market share, introduce new products or services, improve operations, and, ultimately, drive more revenue.  Understanding mergers is essential if you’re considering a career path in mergers and acquisitions (M&A), a branch of investment banking or corporate …

What is a Merger? Definition, Types, and Examples Read More »

What Are Stock Options?

A stock option is a contract between two parties, like a company and an employee, that gives the owner of the option the right, but not the obligation, to purchase or sell stocks at an agreed-upon price. Basically, if you own a stock option, you have the option to buy or sell the underlying stocks.  …

What Are Stock Options? Read More »

What Is an Acquisition? Definition, Types, and Examples

An acquisition is a business transaction that occurs when one company purchases and gains control over another company. These transactions are a core part of mergers and acquisitions (M&A), a career path in corporate law or finance that focuses on the buying, selling, and consolidation of companies.  In this guide, we’ll cover: What Is a …

What Is an Acquisition? Definition, Types, and Examples Read More »

What Is Comparable Company Analysis?

Comparable company analysis is a way to determine how much a company is worth by comparing it to other companies of similar size in similar industries. Comparable company analysis is sometimes referred to by other names, such as comparable analysis, comps analysis, comps valuation, or public comps valuation. They all mean the same thing, though.  …

What Is Comparable Company Analysis? Read More »

What Is Compound Annual Growth Rate (CAGR)?

CAGR, which stands for compound annual growth rate, is the rate at which an investment grows. Calculating the CAGR for an investment between two points (years) can show how well the investment performed in that time period. CAGR is useful for comparing the historical performance of investments.  In this guide, we’ll go over: What Is …

What Is Compound Annual Growth Rate (CAGR)? Read More »