ConceptExchange Ratio
Share Exchange Ratio
The core term in a merger transaction that determines the shareholding proportion of each party's shareholders in the new entity. It is usually determined on the basis of relative valuation and involves the allocation of economic interests, tax treatment, and regulatory approval.
Timeline (last 90 days)
Oct 20
The share exchange ratio is the core term in a merger transaction used to determine the shareholding ratio of both parties' shareholders in the new entity, usually determined based on the relative valuations of the two companies.
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