What Is a Conglomerate Discount? A conglomerate discount refers to the tendency of markets to value a diversified group of businesses and assets at less than the sum of its parts. A conglomerate, by definition, owns a controlling stake in a number of smaller companies that operate independently of other business divisions. A conglomerate discount occurs when
What Is the Conglomerates Sector? The conglomerates sector refers to the group of stocks in the market that consist of large corporations holding a variety of diverse and sometimes unrelated subsidiary companies. Because many conglomerates hold unrelated businesses among one another and may not be direct competitors, the sector itself is quite difficult to analyze
What Is Conglomeration? Conglomeration describes the process by which a conglomerate is created, as when a parent company begins to acquire subsidiaries. Sometimes conglomeration can refer to a time period when many conglomerates are formed simultaneously. One of the chief advantages of conglomeration is the immunity that it provides the parent company from potential takeovers.
What Is a Conglomerate Merger? A conglomerate merger is a merger between firms that are involved in totally unrelated business activities. These mergers typically occur between firms within different industries or firms located in different geographical locations. There are two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers involve firms with nothing in common
What Is Conscious Capitalism? The term conscious capitalism refers to a socially responsible economic and political philosophy. The premise behind conscious capitalism is that businesses should operate ethically while they pursue profits. This means they should consider serving all involved stakeholders, including their employees, humanity, and the environment—not just their management teams and shareholders. The
What Is a Consensus Estimate? A consensus estimate is a forecast of a public company’s projected earnings based on the combined estimates of all equity analysts that cover the stock. Generally, analysts predict a company’s earnings per share (EPS) and revenue numbers for the quarter, fiscal year (FY), and future FYs. The size of the company and
What Is Consequential Loss? A consequential loss is an indirect adverse impact caused by damage to business property or equipment. A business owner may purchase insurance to cover any damage to property and equipment, and may also obtain coverage for secondary losses. A consequential loss policy or clause will compensate the owner for this lost
What Is Conservative Growth? Conservative growth is an investment strategy that aims to grow invested capital over the long term. These funds typically target long-term investors who place high importance on wealth preservation but would also like to take advantage of some of the market’s high growth opportunities. Conservative growth funds usually allocate a high
What Is Computer Abuse? Computer abuse is the legal term for the use of a computer to carry out improper or illegal activities, but which do not constitute financial crimes that would be classified as wire fraud. Examples of computer abuse include using a computer to expose personally identifiable information (PII) such as Social Security
What Is Computer Crime Insurance? Computer crime insurance covers losses to a business from crimes committed through the misuse of its computers by company employees. Such policies are one option on a long list of insurance policies that can be purchased by businesses or individuals to cover a wide range of crimes, including identity theft
