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Acquisitions


Definition

An acquisition is an outright purchase of a minority (less than 50%), equal (exactly 50%) or majority (more than 50%) equity interest in a company or entity. There are various types of acquisitions. These also fall into the category or mergers and acquisitions.

Using the term Acquisitions :

Bud Fox in the movie Wall Street wanted to soon move onto the investment banking side of the business; however, that didn't work out too well as he ended up staring into the abyss and found nothing staring back at him (but hey, at least he then found his true character . . . and went off to the slammer).

Pay Special Attention To :

Don't accept Gordon Gecko's advice when it comes to insider trading. The guy is a little bit loose with the rules. Gordon loves a good acquisition, but the way by which he gained his information was more than a little suspect.

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Related terms

Mergers , Investment Banking , Wall Street , Trading Places , Dawn Raid