0

Kindly explain the meaning of phrase "cash and stock deal" here: Terms of the deal are not being disclosed except to note that it is a cash and stock deal

Does that mean that one company acquired shares of another company for cash?

1
  • 1
    This may belong in the Personal Finance and Money SE. With that said, I would google "Cash and Stock Deal" and check out the results from investopedia.com and Wikipedia. There are lots of good examples there.
    – Nonnal
    Nov 9 '15 at 7:28
2

When Company XYZ buys Company ABC, XYZ must pay the shareholders of ABC. XYZ may do this by exchanging cash for the shares of ABC, exchanging shares of XYZ for the shares of ABC, or both. In a cash and stock deal, it's the last. Each shareholder of ABC will get for each of his ABC shares a certain amount of cash and a certain number of XYZ shares.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.