Celler-Kefauver Act

AAA

DEFINITION of 'Celler-Kefauver Act'

One of several U.S. laws designed to prevent certain mergers and acquisitions which would lead to the creation of a monopoly or otherwise significantly reduce competition. The Celler-Kefauver Act was passed in 1950 to create additional restrictions in addition to the Clayton and Sherman Antitrust Acts.

INVESTOPEDIA EXPLAINS 'Celler-Kefauver Act'

Former antitrust legislation provided controls on certain mergers and acquisitions, but only in the case of buying outstanding stock. Antitrust rules could thus be largely circumvented by only buying the assets of the target corporation. The Celler-Kefauver Act prevents this work-around measure thus strengthening anti-trust rules in the United States.

RELATED TERMS
  1. Sherman Antitrust Act

    Anti-monopoly U.S. legislation which attempted to increase economic ...
  2. J. D. Rockefeller

    One of the great entrepreneurs in American history, J.D. Rockefeller ...
  3. Antitrust

    The antitrust laws apply to virtually all industries and to every ...
  4. Imperfect Competition

    A type of market that does not operate under the rigid rules ...
  5. Clayton Antitrust Act

    An amendment passed by the U.S. Congress in 1914 that provides ...
  6. Asset Valuation Review (AVR)

    A process that establishes an estimate of the value of a failed ...
Related Articles
  1. The History Of Economic Thought
    Economics

    The History Of Economic Thought

  2. A History Of U.S. Monopolies
    Personal Finance

    A History Of U.S. Monopolies

  3. Antitrust Defined
    Personal Finance

    Antitrust Defined

  4. The 5 Most Feared Figures In Finance
    Personal Finance

    The 5 Most Feared Figures In Finance

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center