Q. Which among the following is a correct definition of Share Swap?
Answer:
A company taking over another and uses own stocks to pay for the acquired entity
Notes: A share swap occurs when one company acquires another by exchanging its own shares for the shares of the target company. This method allows the acquiring company to use its stock as currency, avoiding cash outflow. Share swaps are common in mergers and acquisitions, enabling companies to leverage their equity while minimizing immediate cash expenses. Notably, this approach can also help align the interests of both companies' shareholders.