Purchase of Stocks

In Mergers and Acquisitions, the purchase of stocks refers to one company buying shares of another company. This can happen if a firm wants to gain control or ownership of the target company. By acquiring stocks, the buyer secures a financial interest and often becomes a major shareholder. This process can lead to a complete takeover or a partnership, depending on how many shares are purchased. The goal is usually to enhance the buyer's business capabilities, expand market reach, or achieve synergies that improve overall efficiency and profitability.