All Topics  
Stock swap

 

   Email Print
   Bookmark   Link






 

Stock swap



 
 
A stock swap, also known as a share swap, is a business takeover
Takeover

In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the mergers and acquisitions of a private company....
 or acquisition in which the acquiring company uses its own stock to pay for the acquired company. Each shareholder of the newly acquired company receives a certain number of shares of the acquiring company's stock for each share of stock they previously held in the acquired company. Sometimes some shareholders are required to wait for an agreed-upon period of time before they are allowed to sell their new shares of stock.

Alternatively, it is a method of exercising stock options where shares that the holder already owns are used to buy new shares at the exercise price.

It is one of the poison pill
Poison pill

Poison pill is a term referring to any strategy, generally in business or politics, to increase the likelihood of negative results over positive ones for a party that attempts any kind of takeover....
 strategies used to avoid a hostile takeover
Takeover

In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the mergers and acquisitions of a private company....
 bid by another company.






Discussion
Ask a question about 'Stock swap'
Start a new discussion about 'Stock swap'
Answer questions from other users
Full Discussion Forum



Encyclopedia


A stock swap, also known as a share swap, is a business takeover
Takeover

In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the mergers and acquisitions of a private company....
 or acquisition in which the acquiring company uses its own stock to pay for the acquired company. Each shareholder of the newly acquired company receives a certain number of shares of the acquiring company's stock for each share of stock they previously held in the acquired company. Sometimes some shareholders are required to wait for an agreed-upon period of time before they are allowed to sell their new shares of stock.

Alternatively, it is a method of exercising stock options where shares that the holder already owns are used to buy new shares at the exercise price.

It is one of the poison pill
Poison pill

Poison pill is a term referring to any strategy, generally in business or politics, to increase the likelihood of negative results over positive ones for a party that attempts any kind of takeover....
 strategies used to avoid a hostile takeover
Takeover

In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the mergers and acquisitions of a private company....
 bid by another company.