vertical security exchange

(redirected from Vertical Security Exchanges)

Vertical Security Exchange

The trade of one type of security for another. For example, two investors may agree to trade a stock one holds for a bond the other holds. This is often tax-free.

vertical security exchange

The exchange of one security for a different security (that is, stock for debt or debt for stock). Exchange offers involving unlike securities are generally tax-free unless the investor only receives debt in exchange for stock.