Explain the Reason for the Rise in the Development and Use

question 47

Essay

Explain the reason for the rise in the development and use of financial instruments in recent years.Describe some of the key accounting issues regulators have had to face in light of this increased use and development.

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Definitions:

Synergistic Benefits

The additional value created by combining two or more companies or assets, which is above what individual entities can generate on their own.

Merger

The combination of two or more companies into a single entity, often to achieve synergies or scale efficiencies.

Divest

The process of selling an asset or business division.

Stock Acquisition

The purchase of a company's shares by another entity, potentially as a strategy for gaining control or a significant stake in the company.