stock swap

Shares for shares

A stock swap is a transaction where shares of one company are exchanged for shares of another, typically during mergers or acquisitions.

Instead of paying cash, the acquiring company offers its own stock: The merger was structured as a stock swap valued at $12 billion.

Stock swaps also occur when employees exercise options, trading existing shares to cover the purchase price of new ones.

Related

deal · takeover · hostile bid · transaction · due diligence · valuation · shareholders · consolidation · buyout · tax free · securities · ownership · trade · negotiation · golden parachute · portfolio · corporate · dilution

Categories
Opposites
payment method in acquisitions

stock swapleveraged buyout

Debt-funded corporate acquisition

transaction structure

stock swapliquidation

Selling assets for cash

divestiture · hostile takeover · cash settlement · asset stripping

Family

stock, swap, stocks, stocked, stocking, stocky, stockist, stockpile, livestock

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