Match Each of the Definitions That Follow with the Appropriate

question 72

Short Answer

Match each of the definitions that follow with the appropriate investment term (a-j).
-the method of reporting an investment that represents less than 20% of the outstanding stock of another company
A)debt securities
B)equity securities
C)investor
D)investee
E)fair value method
F)trading securities
G)available-for-sale securities
H)held-to-maturity securities
I)equity method
J)business combination

• A)debt securities
• B)equity securities
• C)investor
• D)investee
• E)fair value method
• F)trading securities
• G)available-for-sale securities
• H)held-to-maturity securities
• I)equity method
• J)business combination

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Definitions:

Pre-Offer Strategy

A plan devised prior to making an offer, typically in negotiation or bidding contexts, to maximize successful outcomes.

Tender Offer

A public proposal made by a person or company to shareholders to buy shares of a corporation, typically at a premium over the market price.

Stock Acquisition

The purchase of enough of the voting stock of a corporation to allow the buyer to control the corporation. Also called takeover.

Merger

The combination of two or more companies into one, where one corporation is completely absorbed by another corporation.