stock-for-stock

Definition

A merger arrangement in which the acquiring company trades shares of its own stock for stock held by shareholders of the target company. This arrangement reduces the cost of a merger because the acquiring company does not have to take on debt to finance the acquisition. A merger that is completely "stock-for-stock," with no cash payments, is called an "all-stock" deal.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
stock-for-asset reorganization stock-for-stock reorganization