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I Introduction Political philosophers and economists frequently point to reciprocity, or treating others as they treat you, as a key component of social interaction. (1) As a norm guiding personal [...]

Purpose--The paper aims to present an exchange ratio for merging companies that incorporates the change in the level of riskiness. Design/methodology/approach--The paper is a theoretical one. Its main objective has been achieved exploiting standard modern finance results such as Capital Asset Pricing Model Capital Asset Pricing Model (CAPM). Findings--The paper offers a formula that determines a risk-adjusted exchange ratio that takes into account both risk and synergy. Research limitations/implications--Due to the fact that CAPM is applied and beta factors are required, the formula is fully applicable only to companies whose stocks are traded on a financial market. Empirical test of the exchange ratio formula (using, for instance, an event-study methodology) should be performed. Practical implications--The use of the formula allows the identification of whether the offered exchange ratio fully reflects the expected return/risk profile for stockholders of the merging companies. Originality/value--The paper should be useful in both theoretical and managerial conditions. It carries a way to embed relative riskiness of two companies into a simple formula. Keywords Acquisitions and mergers, Exchange, Stocks Paper type Research paper

The need for the like kind exchanges for the real estate businesses that permit the taxpayers to sell assets and to avoid paying tax is addressed. The suggestions for the taxpayers to use reliably or qualify their reverse exchanges under section 1031 are presented.

Michael R. Vetsuypens (*) We propose the change in short interest as a new metric of the signaling strength of a corporate event. If an event signals positive information, short [...]

Trade-cost analysis (TCA) will become more important to the buyside. TCA will also become a more valuable tool to lessen the costs of trading. Those were the opinions of 99 [...]

Continued good news from the exchange traded fund (ETF) market over the past 12 months must have had shareholders in Deutsche Borse rubbing their hands in glee. Yet again its [...]

Frequent readers of this column in Traders Magazine know how I enjoy poking fun at the absurd level of competition in the options marketplace - six major financial institutions fighting [...]

THE EXTREMES have been more like, X-treme. The greatest bull market ever. The longest-lasting bear since the '70s. The steepest three-day rally in 20 years on the Toronto Stock Exchange. [...]

The New York Stock Exchange board brushes up on securities law IDEALLY, said William Douglas, who was head of the Securities and Exchange Commission (SEC) back in 1937, securities exchanges [...]

Have you noticed something funny about the business pages these days? It's all one story. No matter who is in the headline, the tale follows with uncanny frequency the travails [...]

The report, called M&A Insights, UK Orphan Companies, is the result of an analysis of every UK public company outside the FTSE 350 (and excluding investment trusts), and highlights little [...]

The fortunes of the Spanish and Portuguese markets were mixed in 2001, according to data provided by the Centre for Management Research (CMBOR). The CMBOR figures showed that last year's [...]

WITH THE FTSE 100 CRASHING BELOW 4,000 earlier this week, the bear market has become something of a self-fulfilling prophecy. No one talks about so-called fundamentals for equity investment anymore [...]