A buyout is when a person or company buys the majority of shares, i.e. a controlling interest, in another company. This means they control the majority of votes at the annual meeting, can impact the board of directors, and influence other company decisions.
Posts Tagged ‘takeover’
A Buyout is…
Friday, August 21st, 2009A Takeover is…
Wednesday, July 15th, 2009A takeover is generally the act of assuming control of something, but in business it refers to the purchase of one company by another. For example, if Corporation A takes over Corporation B, then Corporation B is now owned and controlled by Corporation A. A takeover can be done by purchasing stock or exchanging stock; it can also be hostile or friendly.