Abnormal return The return to shareholders due to nonrecurring events that differs from what would have been predicted by the market. It is the return due to an event such as a merger or acquisition.

Acquisition The purchase by one company of a controlling ownership interest in another firm, a legal subsidiary of another firm, or selected assets of another firm.

Acquirer A firm that attempts to acquire a controlling interest in another company.

Acquisition vehicle The legal structure used to acquire another company.

Advance ruling An IRS ruling sought by acquirers and targets planning to enter into a tax-free transaction. A favorable ruling is often a condition of closing.

Affirmative covenant A portion of a loan agreement that specifies ...

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