Corporate Finance

Bonus Issue
An issue of additional shares in a company to existing shareholders, in proportion to their holdings, without the shareholders having to pay for them.
Buy-out
Change in control of a company through its previous shareholders being bought out by new owners.
Dawn Raid
A silent, surprise acquisition of a significant number of shares in a company by another firm, often as a prelude to a formal takeover bid.
Internal Rate of Return (IRR)
An overview of the internal rate of return (IRR) concept which determines the interest rate where the net present value of a project is zero.
Takeover Bid
An offer to purchase all the shares of a company, thereby acquiring control of it.
Debt for Equity
Debt for equity is a financial process where excessive debt obligations are exchanged for equity.
Shark Repellent
Contracts designed to make a company unattractive to potential takeover bidders
Amalgamation: Definition and Meaning
A comprehensive definition and exploration of the economic term 'amalgamation,' also known as merger.
Authorized Capital
Definition and analysis of authorized capital in economics and corporate finance.
Below-the-Line
Items following but not part of the profit-and-loss accounts of firms or the income sections of national income accounts.
Capital Reserves
The part of a company's net assets that exceed the share capital contributed by shareholders, typically arising from various sources and generally retained rather than distributed as dividends.
Consolidated Accounts
An overview and detailed explanation of consolidated accounts in the realm of group companies and their financial practices.
Corporate Income Tax
A comprehensive examination of corporate income tax, including its meaning, context, and major theoretical frameworks.
Debenture
A secured loan instrument raised by a company, typically with fixed interest and sometimes with a fixed redemption date; it defines the rights of debenture holders in different scenarios.
Dividend
The payment of a share in the profits of a company to its shareholders.
Earnings
Understanding Earnings in Corporate Finance and Shareholder Value
Gross Trading Profit
The profit of a company before deducting depreciation allowances, taxation, or debt interest.
Hostile Bid
A takeover bid opposed by a company's directors due to various reasons including belief in better off independently or seeking a higher offer.
Issued Capital
The portion of a firm's authorized capital that has been issued to shareholders.
Limited Liability
The system by which shareholders in a company are not liable for its debts beyond the nominal value of their shares.
Modigliani–Miller Theorem
An exploration of Modigliani–Miller Theorem and its implications in the field of corporate finance within a perfect capital market.
Pay-back Period
The time period firms require to earn the cost of new equipment in profits for investment purposes, not always an economically rational investment criterion.
Recapitalization
A change in the proportions of debt and equity in a company’s capital structure.
Receivership
The situation when a company defaults on its obligations, and a receiver is appointed to manage its assets to pay off creditors.
Reverse Takeover
A comprehensive study of the concept of reverse takeover, where a smaller or private company acquires a larger or public company.
Share Buybacks: Definition and Meaning
An explanation of share buybacks, including their purposes, benefits, and theoretical motivations.
Share Option - Definition and Meaning
A comprehensive definition and exploration of 'Share Option,' its significance, historical context, and comparative analysis across various schools of economic thought.
Stock Dividend
A situation when shareholders receive dividends in the form of new shares in a company rather than cash.
Takeover
The acquisition of a company by new owners through the purchasing of its shares, either in cash or the purchaser's shares.
Unbundling
A comprehensive entry on the concept of unbundling in economics.