In 1911,Standard Oil Co

question 102

Short Answer

In 1911,Standard Oil Co.was declared a monopoly by the government under the Sherman Act and the company was ordered to break itself up into competing companies.Two oil companies,Exxon and Mobil,were the result of this breakup.A few years ago,Exxon and Mobil merged again to form ExxonMobil Corporation.Why did the government allow this merger now?

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Definitions:

Face Value

The nominal value or dollar value stated on a financial instrument, such as a bond or stamp.

Dollar Amount

A monetary value stated in terms of the currency unit of the United States, the dollar.

Interest Earned

The income received from an investment, usually expressed as an annual percentage of the principle.

Callable Bonds

Bonds that have a provision that the issuer can repurchase, or call in, the bonds at specified dates if the board of directors authorizes the retirement (payoff) of the bonds before their maturity date.