Definition of stock swap in English:

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stock swap


1Acquisition of a company in which payment consists of stock in the buying company.
Example sentences
  • Leading storage vendor EMC is paying far more than the $750 million it was rumored to have offered for Legato in March and has announced a $1.3 billion stock swap acquisition.
  • The deal would offer a stock swap worth $32 billion that would give EchoStar more than 90% of the U.S. satellite TV market.
  • Biogen and IDEC Pharma-ceuticals, two companies looking for cures for cancer and autoimmune disorders, announced plans Monday to merge in a US $6.4 billion stock swap, the latest consolidation in the biotech industry.
2A means of exercising stock options in which shares already owned are traded for a greater number of shares at the exercise price.
Example sentences
  • In a bid to dump the Division on current shareholders, a former BHP Steel chief will form a new company and shareholders will be enticed to buy shares with a two-to-one stock swap.
  • AOL, which has a market capitalization of twice that of Time Warner, or at least did at the beginning of the day, shareholders of AOL are getting a share-for-share stock swap in this deal.
  • He was able to get the employees to agree to a 10% pay reduction in exchange for a stock swap.

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Syllabification: stock swap

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