Method of payment

Also found in: Acronyms.

Method of payment

The way a merger or acquisition is financed.

Method of Payment

The way one pays for a transaction. The three most basic methods of payment are cash, credit, and payment-in-kind (or bartering). These three methods are used in basic transactions; for example, one may pay for a candy bar with cash, a credit card or, theoretically, even by trading another candy bar. However, they are also used in large transactions; mergers and acquisitions often occur with some combination of cash, bonds (which is a form of credit), and stock (often exchanging one stock for another). See also: Sale.
References in periodicals archive ?
Nol Card has become a popular payment system considering that it is a unique method of payment in the region, and has ranked first as the best pre-paid e-card in the Middle East Award in the Middle East Smart Cards Awards Ceremony 2013.
Some of the tests in these studies were conducted by classifying the announcement-period returns according to the method of payment.
About one-third of credit card users use them as a method of payment and pay the balance in full each month.
a sales agency in Beaverton, Oregon, expressed feelings shared by most agents: "I feel that the most important item in a contract is the method of payment and the time of commission payment.
In connection with excess benefit or "top-hat" plans, it is not clear how precisely the method of payment must be defined.
When asked about payment security, those surveyed viewed contactless cards as the least secure method of payment.
NOTES and coins remain the UK's favourite method of payment, according to the annual Alliance & Leicester Cash Usage Survey.
6601(e)(2) is important in determining whether interest charges have been properly computed, in deciding whether to litigate or settle, and in choosing the best method of payment allocation when both tax and penalties have been assessed.
More funds are available for retirement under the annuity method of payment because of the additional years of tax-deferred compounded interest on the IRA's accumulated funds.
With respect to the first two taxable years for which a group filed a consolidated return, the group may compute the estimated tax payments on a consolidated or separate return basis, regardless of the method of payment.

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