Antitakeover defenses are things companies do to stop other companies from buying them. A company might use antitakeover defenses if it doesn’t want to be taken over. Companies can use different kinds of antitakeover defenses. Why do companies use antitakeover defenses? There are a few reasons why a company might not want to be taken…
The Ansoff Matrix was made by a guy named Igor Ansoff in 1957. He wanted to help companies figure out how to grow their business. The matrix looks like a square cut into four parts. Each part tells a different way a company can grow. The Four Strategies The four parts are: How Companies Use…
Anticipatory hedging allows companies and investors to protect themselves from possible future losses by making financial arrangements today before a risky situation arises. The goal is to reduce the amount by which the value of something can change in the future. That “something” could be an asset (something valuable that is owned), a liability (a…
An annuitant is a person who regularly receives money payments from an annuity. An annuity is a type of investment that gives fixed costs over time. Annuities are often used to provide income during retirement. The payments an annuitant receives are called distributions. They may be monthly, quarterly, or yearly and can last for a…
Concurrence means to agree with something or someone. You can also use the word concur instead of concurrence. Concurrence often happens in a couple of different ways. Coming to the same conclusion Sometimes, concurrence means different people think carefully about something and agree with each other. They make up their minds but still come to…
An annual inflation swap is a special agreement between two people or companies. This agreement is not bought and sold on a regular market like stocks. Instead, it is an “over-the-counter” deal. That means the two sides work out the details just between them. Exchanging Actual and Expected Inflation In an inflation swap, the two…
An annual aggregate limit is the most money an insurance company will pay you in one year. It does not matter how many times you claim in that year. Once the insurance company has paid you that maximum amount, they will not pay you anymore until the following year starts. Example of an annual aggregate…
An ankle biter stock is a small company stock. The market capitalization of an ankle-biter stock is less than 1 billion dollars. Market capitalization means the total dollar value of all the company’s shares. How Market Capitalization Works To calculate market capitalization, multiply the total number of a company’s shares by the current price of…
An angel investor is a person who invests their own money in a new, private company to own a part of it. The company is usually a startup that could grow fast. How Angel Investors Help Companies Angel investors help these new companies in a few critical ways: How Angel Investors Make Money Angel investors…
Analysis of Accounts Method is a way for a company to guess what its financial statements will look like. Financial statements are essential reports that show how much money a company made and spent and what it owns and owes. The two main financial statements are: Companies want to predict what their future financial statements…
