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What Are the Two Basic Factors Reflected by the Relatively

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What are the two basic factors reflected by the relatively low correlation between the movements of stock markets in different countries?


Definitions:

Merger

Agreement in which two or more firms combine to form one company.

Acquisition

Agreement in which one company purchases another.

Leverage

Increasing the rate of return on funds invested by borrowing funds.

Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

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