What Is a Merchant Agreement? A merchant agreement is a contract governing the relationship between a business and the merchant acquiring bank it partners with. This document details the full range of electronic payment services that the merchant acquiring bank agrees to provide. In most cases, such banks are responsible for facilitating every aspect of
What Are Merchant Category Codes (MCCs)? Merchant category codes (MCCs) are four-digit numbers that a credit card issuer uses to categorize the transactions consumers complete using a particular card. Payment brands use merchant category codes to classify merchants and businesses by the type of goods or services provided in order to track and restrict transactions.
What Is a Merger? A merger is an agreement that unites two existing companies into one new company. There are several types of mergers and also several reasons why companies complete mergers. Mergers and acquisitions (M&A) are commonly done to expand a company’s reach, expand into new segments, or gain market share. All of these
What Is a Merger of Equals? A merger of equals is when two firms of about the same size come together to form a single new company. In a merger of equals, shareholders from both firms surrender their shares and receive securities issued by the new company. Companies may merge to gain market share or
What Is Merger Arbitrage? Merger arbitrage, often considered a hedge fund strategy, involves simultaneously purchasing and selling the respective stock of two merging companies to create “riskless” profits. Because there is the uncertainty of the deal being completed, the stock price of the target company typically sells at a price below the acquisition price. A merger
What Is Merger Mania? Merger mania is a catch-all phrase used to describe bouts of frenzied deal-making activity, often at the top of the merger and acquisition (M&A) cycle. It is associated with companies paying crazy prices, financed by excessive levels of debt, in a desperate attempt to quickly boost revenues and profits. Key Takeaways Merger mania
What Are Mergers and Acquisitions (M&A)? Lara Antal/Investopedia The term mergers and acquisitions (M&A) refers to the consolidation of companies or their major business assets through financial transactions between companies. A company may purchase and absorb another company outright, merge with it to create a new company, acquire some or all of its major assets
What Are Merger Securities? Merger securities are non-cash assets paid to the shareholders of a corporation that is being acquired by or merged with another company. These securities generally consist of bonds, options, preferred shares, and warrants. Key Takeaways Merger securities are non-cash assets paid to the shareholders of a corporation that is being acquired
What Is a Merkle Root? A Merkle root is the hash of all the hashes of all the transactions that are part of a block in a blockchain network. Key Takeaways A Merkle root is a simple mathematical way to verify the data on a Merkle tree.Merkle roots are used in cryptocurrency to make sure data
What Is Merrill Lynch & Co.? Merrill Lynch & Co. is the former name of a prominent Wall Street investment firm. Since its acquisition by Bank of America (BAC) in 2009, it has become known simply as “Merrill” and operates as a wealth management division of Bank of America. Founded by Charles E. Merrill in
