General Investing
  -General information about
  getting started.
Stocks
  -How investing in the stock
  market works
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  -How bond investing works
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  -How mutual funds work
Economics
  -A basic intro to the economy
Advanced Investing Topics
  -This section covers topics
   like futures and options

Acquisition - Definition
Below, you'll find a definition of this investing term...

Definition: An acquisition is when one larger company purchases a smaller company.  Not to be confused with a "merger", which is when two approximately equal-sized companies merge to combine forces.

TeenAnalyst Advice: Usually, the company that is being acquired typically sees its stock price appreciate right after the news is announced.  The company doing the buying usually sees its stock price fall.

Sometimes mergers and acquisitions can turn ugly.  Watch out for your companies if this happens, because sometimes the stock prices can drop significantly on the news.

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

Stocks - Learn about investing in the stock market.

 

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