This practice allows larger companies to purchase smaller companies to increase profitability or eliminate competition.

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Acquisitions refer to the practice of larger companies purchasing smaller companies. This allows them to increase profitability by integrating the smaller company's resources or eliminating competition. Mergers, on the other hand, refer to the combination of two companies to form a new entity. IPOs (Initial Public Offerings) refer to when a company goes public and offers its shares to investors, while buybacks refer to when a company repurchases its own shares from the market.

This Practice Allows Larger Companies to Purchase Smaller Companies to Increase