Any acquirer shares received in full or partial exchange for target shares triggers an immediate tax liability for target shareholders.

Question

Quizplus · Accepted Answer

The immediate tax liability for target shareholders depends on the specific terms of the exchange and the tax laws applicable. If the exchange qualifies as a tax-free reorganization under the IRS code, the target shareholders may not incur an immediate tax liability.

Any Acquirer Shares Received in Full or Partial Exchange for Target