ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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COST SYNERGY Definition
COST SYNERGY is the savings in operating costs expected after two companies, who compliment each others strengths, join.
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LEGITIMACY THEORY posits that businesses are bound by the social contract in which the firms agree to perform various socially desired actions in return for approval of its objectives and other rewards, and this ultimately guarantees its continued existence.
VALUE STOCK is a stock that trades at a lower price relative to its fundamentals (i.e. earnings, dividends, sales, etc.) thereby being considered undervalued by a value investor. Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.