An acquisition is when one
larger company purchases a smaller company. Not to be confused with a "merger",
which is when two approximately equal-sized companies merge to combine forces.
Usually, the company that is being acquired typically sees its stock price
appreciate right after the news is announced. The company doing the buying
usually sees its stock price fall.
Sometimes mergers and acquisitions can turn ugly. Watch out for your
companies if this happens, because sometimes the stock prices can drop
significantly on the news.
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