A stock swap transaction is an acquisition method in which an acquiring firm exchanges its shares for shares of the target company according to a predetermined ratio.

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This statement is true. In a stock swap transaction, the acquiring company offers its own shares to the shareholders of the target company in exchange for their shares, often at a predetermined ratio or exchange rate. This method can be beneficial for both parties as it allows the target company's shareholders to become part-owners of the acquiring company, while the acquiring company gains control of the target's assets and operations.

A Stock Swap Transaction Is an Acquisition Method in Which