share (noun, share, \ ʃer \) exchange (noun, ex-change, \ ɪksˈtʃeɪndʒ \)
Definition: is a type of business combination that results in two companies preserving their independent functioning, while exchanging a portion or entirety of their shares between them. A share exchange has to be discussed and approved by the board of directors of both enterprises involved in the combination before it can come into effect. The shareholders of both companies can either remain the same or change depending on their own choice and the agreed upon terms.
In a Sentence:
- Nicolson and Wise Invest have recently performed a share exchange. Several financial experts have predicted that this combination is the first step before the merger between the two enterprises.
- Even though initially we only had to give half of our shares, Will Freeman insisted that we had to give all of our assets during the share exchange.
- Despite the fact that we’ve given sixty-five percent of our assets during the share exchange, we’ve retained our identity as a company.
Synonyms and related words: stock exchange, share exchange offer, share, shareholder, buying market share