Method of payment

Method of payment

The way a merger or acquisition is financed.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Method of Payment

The way one pays for a transaction. The three most basic methods of payment are cash, credit, and payment-in-kind (or bartering). These three methods are used in basic transactions; for example, one may pay for a candy bar with cash, a credit card or, theoretically, even by trading another candy bar. However, they are also used in large transactions; mergers and acquisitions often occur with some combination of cash, bonds (which is a form of credit), and stock (often exchanging one stock for another). See also: Sale.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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