Question Answer
Many times we read in financial newspapers/magazines about "Share Swap" done by big corporates. What is "Share Swap"? (A) A business takeover in which acquiring company uses its own stock to pay for the acquired company (B) When a company uses its own shares to get some short term loan for working capital requirement, it is known as Share Swap (C) When companies are required to float a new issue to earn capital for their expansion programmes, each shareholder gets some additional preferential shares. The process of the allotment of preferential share is known as Share Swap.
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