Archive for March, 2011

PostHeaderIcon The Mergers and Acquisitions

The Mergers and Acquisitions also known by its acronym in English ” M & A “refers to an aspect of overall corporate strategy of management that deals with the combination and acquisition of other companies as well as other assets. The decision to perform The Mergers and Acquisitions is economic, specifically involves a decision of investment, defined as the allocation of resources in the hope of earning back the funds that will allow future invested and get some benefit. So a merger or acquisition will be good if the purchase price is lower than the present value (PV) of cash flow (PE) associated with the incremental operation.

If so, this investment decision creates value for shareholders and can be considered good, otherwise it is said that destroys value and is considered a failure. Merger: A merger is the union of two or more people who decide to legally separate the assets together and form a new society. If the companies merge, absorbs the remaining assets, we are faced with a merger. Acquisition: An acquisition involves the purchase by a legal person shares in the package control of another company, without making the merger of their assets.

PostHeaderIcon US dollar and the Canadian dollar: Parity and beyond

The forex market is the most popular market in the world and the most valuable. And increasingly were seeing more and more private investors starting to trade forex, whether its through an online forex broker, spread betting or CFD trading.

To start trading forex its good to start learning as much as possible about what influences the US dollar and its relationship with all the other major currencies.

One relationship that has changed recently is the one between the US dollar and the Canadian dollar. The Canadian dollar reached parity with its US counterpart for the first time in 30 years in 2007; it had risen 62% against its peer since 2002 during an economic boom period. After falling back since 2008, 2010 saw the Canadian dollar test parity with US dollar again.

One of the strengths of Canadas economy is its supplies of oil, and with oil prices continuing to rise and demand high, confidence in the country and the currency is strong as the recent success of bond auctions are a testament to.

One of the downsides of the strong Canadian dollar against the US dollar is that Canadian goods imported to the US become more expensive and less desirable. As 70% of Canadas exports are to the US this could become a problem longer term.

IG Markets provide a free, expert, weekly commentary on the financial markets that will help you learn more about forex trading. Find out more at: www.igmarkets.co.uk.

Both spread betting and CFD trading can result in losses as well as profits so make sure you understand the risks involved.