A company in order to succeed or to keep the operations running always need capital. That capital could be a large sum which can be derived from the sale of stocks and bonds. It sounds like an easy proposition, but in reality one may need special expertise to make sure that maximum revenues are obtained to fulfil independent requirements of the company.
The absorption of two companies into one major powerhouse can be best described as merger and acquisition of companies. It should be noted that the company purchasing the company sold, will retain its name, whereas the company being sold, dilutes it name and mergers with the prior company.
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