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Question

General Knowledge Question on Business and Economy

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 share to get some short term loan for working capital requirement
C. When companies are require to float a new issue to earn capital for their expansion programmes,
each shareholder gets some additional preferential share. The process is known as Share Swap.

A

Only A

B

Only A and B

C

Only C

D

None of the above

Answer

Only A

Explanation

Solution

The correct option is (A): Only A