Quad Witching – What Is Quadruple Witching Day? Quad witching refers to a date that occurs four times each calendar year. On quadruple witching days, stock index futures, stock index options, stock options, and single stock futures expire simultaneously. While stock options contracts and index options expire on the third […]
Investing
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What Is Agency Theory? Agency Theory describes how to effectively manage partnerships in which a principal specifies which job to undertake while an agent actually does it. In general, agency theory is used to understand and address problems in the connection between corporate owners and their agents. That connection is […]
What Is an Acquirer in Mergers and Acquisitions? In a merger or acquisition, an acquirer is a firm that gains the rights to another company or commercial connection through a financial transaction. These can be mergers, acquisitions, or other types of structured agreements. Acquirers buy out a firm and take […]
What is Price to Free Cash Flow? Price to free cash flow is an equity valuation tool that compares a company’s market price per share to its free cash flow per share (FCF). This metric is very similar to the price to cash flow valuation metric, but it is considered […]
What Is Rule 147? SEC Rule 147 allows small local companies to raise intrastate funds without having to register with the Securities & Exchange Commission. Rule 147 can be used by a company to raise funds within its own state of operations. Further, they can do this without actually registering […]
What Are Drag-Along Rights? Drag-along rights let majority shareholders drag minority shareholders into the sale of a company if minority holders are given the same price, terms, and conditions. Share offerings, mergers, acquisitions, and takeovers can all be complicated transactions. The more parties involved, the more complicated and difficult a […]