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Exchange Ratio

   Also found in: Acronyms 0.03 sec.
Exchange Ratio
The number of new shares in an acquiring firm that are given for each outstanding share of an acquired firm.

Exchange Ratio
In mergers and acquisitions, the number of shares an acquiring firm distributes for each validly rendered share of the acquired company. Each exchange ratio is calculated in accordance to the merger or acquisition agreement. Factors considered in determining the ratio are the relative value of each company prior to the closing of the merger or acquisition, any potential tax advantages for both parties, and applicable regulations.


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? Mentioned in ? References in periodicals archive
 
UN) updates the exchange ratio of Enterra Energy Corp.
UN) (NYSE: ENT) updates the exchange ratio of Rocky Mountain Acquisition Corp.
UN) updates the increase to the exchange ratio of the exchangeable shares of Enterra Energy Corp.
 
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