stock swap

Definitions (2)

1. An acquisition in which the acquiring company uses its own stock to pay for the acquired company.
2. A method of exercising stock options where shares that the holder already owns are used to buy new shares at the exercise price.

Use stock swap in a sentence

The larger firm acquired the start-up by utilizing a stock swap and no money was exchanged in the transaction as a result.

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STOCK SWAP Take-over agreement in which the shares of the acquiring firm are exchanged with the shares of the acquired firm in an agreed upon ratio.

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