Who Gets Paid in a Company Buyout and How Stock Prices Form
The money from a buyout goes to the acquired firm’s shareholders and other equity holders, and possibly debt holders if some price is allocated to debt. If the purchase uses stock, the acquired shareholders receive shares of the acquirer. Stock prices are set by the market, not by the company, fluctuating with demand like collectibles.
MENTIONED IN THIS ARTICLE
Beverly Wolf
Richmond
Calif
Larry W
Union, Ky
Five forces shaping an industry from Porter and Siegel
Porter outlines five competitive forces that influence industry profitability. Entry barriers bargaining power of suppliers and buyers threat of substitutes and rivalry determine ease of entry and pricing. Airlines illustrate high rivalry and thin returns while switching costs and brand value affect supplier and customer leverage.
MENTIONED IN THIS ARTICLE
Free Press
Harvard Business School
Michael Porter
Boeing
Airbus
Jeremy J. Siegel
Name That Company Wins Big In 1971 Flight Origins
The airline started in 1971 flying to Houston, San Antonio and Dallas. It is the nation's largest domestic carrier with about 70 million passengers annually across 61 cities in 31 states on nearly 3,000 daily flights. It has 33 years of profitability, over $6 billion yearly revenue, an average fare of $91, and employee ownership above 10 percent. The ticker symbol fuels strong investor interest.
MENTIONED IN THIS ARTICLE
Houston
San Antonio
Dallas
Roth 401(k) expands company retirement options in 2000s
New Roth 401(k) plans blend traditional 401(k) and Roth IRAs offering after tax contributions with tax free withdrawals in retirement. Hewitt Associates found about a third of large employers plan to add Roth 401(k)s this year. Investors weigh tax brackets and potential matches as guidance from Ed Slott and Stephen Atkus notes.
MENTIONED IN THIS ARTICLE
New York
Roth
Ed Slott
Rockville Centre
N.Y
Hewitt Associates
Delaware
William V. Roth Jr
Stephen Atkus
Vanguard Center For Retirement Research
Valley Forge
One Stock gamble and a margin scare in Garden Grove
Brian Daniels recalls selling all holdings to ride one stock until a margin call hit. He covered losses, regained his original investment, and learned not to trust a single pick or tell a broker everything. He warns against putting all eggs in one basket and shares his near-miss lesson.
MENTIONED IN THIS ARTICLE
Brian Daniels
Garden Grove
Calif
Altria forms joint venture with China National Tobacco for Marlboro license
Altria's Philip Morris unit licenses Marlboro production to China National Tobacco for 10 years and creates a 50 50 joint venture to export Chinese tobacco products and market Chinese brands. CNTA dominates China with 1.9 trillion cigarettes sold last year, while Altria trails at 761 billion. The deal offers pure licensing profit and potential leaf sourcing gains, with a cautious stock outlook.
MENTIONED IN THIS ARTICLE
Altria’s
Philip Morris
China National Tobacco
China
Altria
Bosch
A German engineer founded Workshop for Precision Mechanics and Electrical Engineering in 1886. Now a global supplier of consumer, automotive, building and industrial technology with about 240,000 employees, 270 subsidiaries, 2,800 inventions, and 40 billion euros in annual sales. The majority share is held by a charitable foundation named for the founder since 1964.
MENTIONED IN THIS ARTICLE
Germany
Bosch
Yields rise for money market funds
The seven day average yield on money market mutual funds rose to 3.68 percent in the week ended Tuesday from 3.61 percent. The 30 day average yield also rose to 3.64 percent from 3.61 percent, while seven day and 30 day compounded yields increased to 3.74 percent and 3.71 percent respectively. Bankrate.com shows slight declines in rates for money market accounts and related products.
MENTIONED IN THIS ARTICLE
New York
Money Fund Report
iMoneyNet Inc
Westboro
Mass
Money Fund
Bankrate.com
North Palm Beach, Fla
Also Mentioned on This Page
Fool.com
Fool
Safeco Discount
Peece
Skogman
Betty Dale
Preran
ENS
Vice C.1.c
FNBC
Fia
Fnbciowa
Money Funds
National Association of Realtors
RE/MAX associates
1St Street
New
Cedar Rapids
State of
Iowa
Vicky Ritelinger
Capy
Iowa Community Credit Union
4Th Ave
NCUA
Www
Iccu.org
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