A ratio that defines how many shares of the acquirer's stock are exchanged for each share of the target's stock is referred to as a:
A)Fixed exchange ratio
B)Secure exchange ratio
C)Floating exchange ratio
D)Stock-for-stock ratio

Question

Quizplus · Accepted Answer

A fixed exchange ratio is used in mergers and acquisitions to determine how many shares of the acquiring company's stock will be exchanged for each share of the target company's stock.

A Ratio That Defines How Many Shares of the Acquirer's