Corporate Actions

Acquisition

Definition

What is Acquisition?

The purchase of control or ownership of a company or business.

Example in practice

A larger bank acquires a smaller bank by buying its shares.

Keep learning

An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

An issue of additional shares to existing shareholders without a cash payment.

An increase in the number of shares accompanied by a proportional reduction in price per share, leaving total value initially unchanged.

A vote cast by another person or electronically on behalf of a shareholder.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.