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English definition of “exchange of shares”

exchange of shares

noun [C or U]
 
 
UK ( US exchange of stock)
FINANCE an agreement when two companies merge (= become one company) or one takes over the other, giving shareholders in each company shares in the other company: 25% of the business was sold to Tarquin Ltd., by way of an exchange of shares.
(Definition of exchange of shares from the Cambridge Business English Dictionary © Cambridge University Press)
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