Buy or Swap? Vocabulary on Investment Banking


Choose the right word to complete this conversation between two investment bankers.

Words: quarterly, takeover, listed, share, stock swap

Alex: Sophie, have you heard that Lexia Ltd. is planning a __________ of Systems Enterprises?

Sophie: What are they offering, a _____________?

Alex: No, a straight cash offer of $32 a ____________.

Sophie: Hmm. Lexia´s production is moving to India, though. They´re _________ in Mumbai, right?

Alex: Yes, and their last five _______________ results are excellent, too. What are you going to do?

Sophie: I think, I´ll wait a while. I think Lexia will have to offer at least $35.

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answers:

Alex: Sophie, have you heard that Lexia Ltd. is planning a takeover of Systems Enterprises?

Sophie: What are they offering, a stock swap?

Alex: No, a straight cash offer of $32 a share.

Sophie: Hmm. Lexia´s production is moving to India, though. They´re listed in Mumbai, right?

Alex: Yes, and their last five quarterly results are excellent, too. What are you going to do?

Sophie: I think, I´ll wait a while. I think Lexia will have to offer at least $35.

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