Question

What do you call a group of businesses that merge together and has investors?

Answer 1

Answer: A merger

Explanation: When two existing companies join and continue to operate, either as a new company or one of the existing companies, the process is called a “merger” or an “acquisition.” Which term is correct depends on how the pairing occurs and its purpose.

After a merger, shares of the new company are distributed to existing shareholders of both original businesses. Due to a large number of mergers, a mutual fund was created, giving investors a chance to profit from merger deals