What is an Equity Swap?
Equity swap refers to the merger or acquisition of another company by a listed company through stocks. At this time, the market value of the company's stock after the merger needs to be re-estimated. Under normal circumstances, the company will re-evaluate the company's value by issuing new shares or stock replacements. In the process of stock swap, it is necessary to replace the market value of two originally different stock markets with the same stock, so as to reach a clear share of the shares of the two companies in the combined company.
Equity swap
discuss
- Chinese name
- Equity swap
- Field
- financial
- Occurrence form
- Company acquisition or merger
- Swap rules
- Corporate valuation and gaming
- Equity swap refers to the merger or acquisition of another company by a listed company through stocks. At this time, the market value of the company's stock after the merger needs to be re-estimated. Under normal circumstances, the company will re-evaluate the company's value by issuing new shares or stock replacements. In the process of stock swap, it is necessary to replace the market value of two originally different stock markets with the same stock, so as to reach a clear share of the shares of the two companies in the combined company.
- Refers to the transfer of equity in a company's acquisition or merger operation, in whole or in part, by means of a stock exchange. Usually, the acquirer issues new shares in exchange for the equity of the company being acquired. Sometimes a new company is also established, and the shares of the new company are exchanged for the equity of both parties in the merger. The share conversion ratio reflects the asset valuation of the two companies. [1]