Asked by Victoria Archie on Jul 30, 2024
Verified
Market Company exchanges some of its shares for some of the shares of Niche Corporation. On the exchange of shares between Market and Niche
A) both companies continue to exist.
B) both companies cease to exist.
C) only Market survives.
D) only Niche survives.
Shares Exchange
The process where shares of stock are traded or exchanged between parties, typically on a stock exchange platform.
Companies Existence
Refers to the legal recognition and status of a corporation as an entity that is separate and distinct from its owners or shareholders.
- Familiarize yourself with the mechanisms and approvals involved in corporate unions and acquisitions.
Verified Answer
DB
Devyol BekawalaJul 31, 2024
Final Answer :
A
Explanation :
When companies exchange shares, they both continue to exist as separate legal entities. This exchange does not dissolve either company.
Learning Objectives
- Familiarize yourself with the mechanisms and approvals involved in corporate unions and acquisitions.
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