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Vertical merger |
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Vertical mergerWhen one firm acquires another firm that is in the same industry but at another stage in the production cycle. For example, the firm being acquired serves as a supplier to the firm doing the acquiring.Vertical merger Similar MatchesVertical spreadVertical spreadSimultaneous purchase and sale of two options that differ only in their exercise price. See: Horizontal spread. Vertical line chartingVertical line chartingA form of technical charting that shows the high, low, and closing prices of a stock or a market on each day on one vertical line with the closing price indicated by a short horizontal mark. Vertical acquisitionVertical acquisitionBuying or taking over a firm in the same industry in which the acquired firm and the acquiring firm represent different steps in the production process. Vertical specializationVertical specializationAnother term for fragmentation. Used by Hummels, Rapoport, and Yi (1998). Vertical integrationVertical integrationProduction of different stages of processing of a product within the same firm. Further SuggestionsVertical intraindustry tradeEconomies of vertical integration |
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