What is Merger Arbitrage? Merger arbitrage, otherwise known as risk arbitrage, is an investment strategy that aims to generate profits from successfully completed mergers and/or takeovers. It is a type of event-driven investing that aims to capitalize on differences between stock prices before and after mergers. Investors who employ merger arbitrage strategies are known as...
What is a Middle-Market Firm? A middle-market firm is one with a size that falls in the middle range of a market or industry. U.S. businesses can be divided into three categories – the big, middle-market, and small businesses. The middle-market firms are larger than the small businesses and smaller than the big businesses. They...
What is the Volume Price Trend Indicator (VPT)? The Volume Price Trend Indicator (VPT) is a stock market indicator that helps traders relate a stock’s price and trading volume. It helps in identifying the parity between the supply and demand for a stock and also helps in predicting the price of a stock, both in...
What is a Majority Shareholder? A majority shareholder is any individual or company (or sometimes a government) that owns more than 50% of a company’s shares. Because such individuals or entities make a substantial financial investment into the company, they are considered stakeholders. It means they have a vested interest in the company’s performance and...
What is the Multilateral Investment Guarantee Agency (MIGA)? The Multilateral Investment Guarantee Agency, abbreviated as MIGA, is an international agency constituted to promote large scale foreign investment projects in developing countries. MIGA specializes in facilitating high-risk investments in low-income countries and supports projects that are socially, economically, and environmentally sustainable. Headquartered in Washington DC, U.S., MIGA is...