Mergers and Acquisitions Go in Waves

question 32

True/False

Mergers and acquisitions go in waves.Because acquirers prefer to pay low prices for acquired companies,these M&A waves tend to be inversely correlated with stock market fluctuations.

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Definitions:

Scatter Diagram

A graph that uses Cartesian coordinates to display values for typically two variables, showing how much one variable is affected by another.

Linear Relationship

A type of association where changes in a variable predictably correspond to changes in another variable with a constant rate.

Horizontal Axis

The x-axis in a graph or chart, typically representing the independent variable or the scale of time.

Vertical Axis

The y-axis in a chart or graph, which often represents the range of the dependent variable.