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7 Essential Words of Fall

stock swap1

noun

an acquisition in which the acquiring company offers its stock to pay for the acquired company

Examples

In a stock swap, 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.

stock swap2

noun

a method of exercising stock options in which shares already owned are exchanged for a greater number of shares at the exercise price

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