Mexico's only securities market, the Mexican Stock Exchange (in Spanish, la Bolsa Mexicana de Valores, or BMV) has its headquarters in Mexico City. Established in 1886 as the Mexican Mercantile Exchange, it adopted its current name in 1975 and is the second-largest stock exchange in Latin America (after Brazil). Its trading system is fully electronic, and its main index is the IPC. Taobiz explains Mexican Stock Exchange (MEX) .MX The types of securities exchanged through the BMV include stocks, debentures, government and corporate bonds, warrants and other derivatives. Shares of initial public offerings can be made available through the BMV. The Mexican Stock Exchange's roles include facilitating securities trading, making securities information available to the general public, promoting fair market practices, ensuring transparency and contributing to the growth of jobs and the economy in Mexico.
A general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed. Taobiz explains Mergers And Acquisitions - M&A An example of a major merger is the merging of JDS Fitel Inc. and Uniphase Corp. in 1999 to form JDS Uniphase. An example of a major acquisition is Manulife Financial Corporation's 2004 acquisition of John Hancock Financial Services Inc. The term M&A also refers to the department at financial institutions that deals with mergers and acquisitions.
A non-cash asset paid to the shareholders of a corporation that is being acquired or is the target of a merger. Theses securities generally consist of bonds, options, preferred stock and warrants, among others. Taobiz explains Merger Securities Merger securities can become undervalued when large investment firms are required to sell them as a result of their strict investment requirements. For example, a large mutual fund may receive stock options from an acquiring company when one of the companies held in its portfolio is purchased. If the fund has a policy against holding options, it may be required to sell them, which can then cause the price of the options to fall to very low levels.
The combination of two firms of about the same size to form a single company. In a merger of equals, shareholders from both firms surrender their shares and receive securities issued by the new company. Taobiz explains Merger Of Equals A merger of equals is the most accurate definition of a merger. Most merger activity, even friendly takeovers, sees one company acquire another. When one company is an acquirer, it is proper to call the transaction an acquisition. Because one company is the purchaser and the other is for sale, such a transaction cannot be viewed as a merger of equals. For example, the creation of DaimlerChrysler saw both Daimler-Benz and Chrysler cease to exist. Because neither firm acquired the other and a new company was formed, this is considered a merger of equals.
An accounting term used to describe the situation when the total value of the share capital used to purchase another company is less then the total value of the equity purchased. The merger does not necessarily have to be an all-stock acquisition. Taobiz explains Merger Deficit In other words, a merger deficit arises when a company uses funds it raised in new stock issues to purchase the stock of another company. The stock purchased must be worth more then the share capital used to purchase it in order for the deference to be classified as a merger deficit.
1. In the most general context, a brokerage firm (or broker) holding membership on an organized stock or commodities exchange. Membership is generally required in order to fill trades for clients on the exchange. 2. For the New York Stock Exchange, one of more than 1,300 individuals or firms owning a seat on the exchange. 3. For the National Association of Securities Dealers (NASD), any broker-dealer admitted to membership in the association. Taobiz explains Member Brokerages must have a "member seat" on the NYSE to trade stocks for their clients. The larger firms have several seats on the exchange. Seats cost more than $1 million each!
A ratio comparing the number of short sales transacted on behalf of NYSE members to the entire number of short sells transacted on the exchange. Taobiz explains Member Short-Sales Ratio This ratio is used to gauge and analyze the sentiment of market professionals. By isolating the number of shorts transacted by "pros," investors can remove the unwanted noise of public traders, who may be less informed.
A company with a market capitalization between $2 and $10 billion, which is calculated by multiplying the number of a company''''s shares outstanding by its stock price. Mid cap is an abbreviation for the term "middle capitalization". Taobiz explains Mid Cap As the name implies, a mid cap company is in the middle of the pack between large cap and small cap companies. Keep in mind that classifications such as large cap, mid cap and small cap are only approximations that change over time. Also, the exact definition of these terms can vary among the various participants in the investment business.