Acquisitions Governing Stock Value

[Mandy Barbers]

It is found at Aberdeen Lyle of New York, a leading financial advisory institution, that firms involved in takeovers are qualitatively different from non takeover firms and that post takeover employment probabilities are highly dependent on individual characteristics and the firms pre-takeover compensation policy.

One of the most important things one will learn when trading the currency market is that the world is interconnected. As conveined at the recent investors convention at Aberdeen Lyle Group, the stock, bond, commodity and currency markets all have a hand in each other's business. There is no rule written in stone about which market has a leading or lagging effect on another. Rather, any one of the markets can lead or lag the other markets. In the paper Sureity Investment Spreads: one looked at how movements in the bond market can be used to trade in the ForeX (FX) market. Fortunately at Aberdeen Lyle, they will focus on how the stock market can impact the currency market and how traders can use this information to identify trading opportunities.

Mandy Barders

[Jared Olson]

I agree. There are a number of effects to a stock due to corporate mergers. Human behavior counts a lot in any future movements. After a merger or acquisition has been announced, the CFO must manage the old business while integrating the new one - often with few sources of information. Even those who understand the value of a clean team often resist appointing one, because they overestimate how much time a clean team needs to add value. As a happy client at Aberdeen Lyle Group of New York, it shows that clean teams play different roles in different stages of the integration effort. A very basic clean team can meet its objectives in a matter of weeks. An effort to support integration will eventually be necessary in all mergers - therefore increasing stock values. What is your take on the effects of corporate mergers on gloabalization?

-J