Bargain Purchase

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Dictionary Says

Definition of 'Bargain Purchase'

Financial assets acquired for less than fair market value. In a bargain purchase business combination, a corporate entity is acquired by another for an amount that is less than the fair market value of its net assets. Current accounting rules for business combinations require the acquirer to record the difference between fair value of the acquired net assets and the purchase price as a gain in its income statement, thereby providing an immediate boost to the acquirer's equity.
Investopedia Says

Investopedia explains 'Bargain Purchase'

In the aftermath of the 2008 market crash, the enormous number of financial companies that were trading at huge discounts to their book value presented an unmatched opportunity for bargain purchases. Firms that were able to take advantage of these distressed priced companies and assets were able to add to their asset base at relatively little cost. However, only a limited number of financial companies were acquired in this manner.
Search results for

'Bargain Purchase'

  • Why might a bond agreement limit the amount of assets that the ...

    http://www.investopedia.com/ask/answers/09/bond-covenant-lease.asp
    ... The lease would be treated as a capital lease if one of the following criteria is
    met: there is a transfer of ownership; there is a bargain purchase option in ...

  • Buying Foreclosures At A Bargain Price - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/Buying-Foreclosures-At-A-Bargain-Price.aspx
    ... financing incentives from government agencies to encourage buyers to purchase a
    foreclosure ... that buying a foreclosure means you are getting a bargain, but this ...

  • Are You Really Getting A Great Deal On Flash Sale Sites? ...

    http://financialedge.investopedia.com/financial-edge/0112/Are-You-Really-Getting-A-Great-Deal-On-Flash-Sale-Sites.aspx
    ... are still some deals to be found on these sites, but don't assume that because it
    has a countdown clock that it's a bargain. Never purchase something without ...

  • Big Box Stores Vs. Small Retailers - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0212/Big-Box-Stores-Vs.-Small-Retailers.aspx
    ... money you save over the course of a year (depending on what you purchase, of course ...
    Pro: Sometimes fighting the crowds is worth it just to get a good bargain. ...

  • 9 Student Costs Everyone Can Take Advantage Of - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/9-Student-costs-everyone-can-take-advantage-of.aspx
    ... Most retailers want people to purchase and use their products, so it can be a
    win-win situation ... In this high-cost world, being bargain savvy just makes sense. ...

  • Purchasing A Short-Sale Property

    http://www.investopedia.com/articles/pf/08/purchase-short-sale-property.asp
    ... However, there are a couple of ways in which the purchase agreement you and your
    agent ... If you still want to proceed in an attempt to snag a bargain or simply ...

  • Get The Most Out Of Employee Stock Options

    http://www.investopedia.com/articles/optioninvestor/07/esoabout.asp
    ... the employer no longer reserves the right for its employee to purchase company stock ...
    because it is used to determine the gain (called the bargain element) and ...

  • CFA Level 1 Study Guide - Liabilities - Capital And Operating ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/capital-operating-leases.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
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  • CFA Level 1 Study Guide - Liabilities - Effects Of Capital Vs. ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/capital-operating-leases-effects.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • The Pitfalls Of Buying A Foreclosure House

    http://www.investopedia.com/articles/mortgages-real-estate/08/foreclosures.asp
    ... carefully. Don't overlook the fundamentals that make a property desirable
    just because the purchase price is a bargain. For further ...

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