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Tip of the Day Don't try to Pick Stocks

Don't try to Pick Stocks - Some of us when we have extra money think that we can invest it in the stock market and earn some returns on...

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Merger

Definition: When one company purchases another company of an approximately similar size.  The two companies come together to become one.

TeenAnalyst Advice: Two companies usually agree to merge when they feel that they can do something together that they can't do on their own.

For example, AOL and Time Warner merged a few years back in hopes that they could both gain something.  AOL wanted access to Time Warner's cable network.  Time Warner wanted access to AOL's users (to promote movies and other Time Warner products) as well as AOL's extensive internet content.

 

Discuss It!

Pest equipment said:

We have seen so many good merging happening recently. The major ones we saw recently were between Aetna and Humana. Those who have bought the stocks of Aetna would have probably got a good fortune out of this merger.

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Definition of the Day Real Estate Investment Trust (REIT)

Definition: A security that trades as a stock on the stock exchange, but invests in real estate and/or mortgages. TeenAnalyst Advice: REIT's are special trusts that receive tax advantages from the government.  They're obligated to pay out 90% or more of their earnings to investors in the form of dividends so...

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