exchange ratio

exchange ratio
USA
The number of shares of the acquiring company exchanged for one target company share in a merger. For example, if X Corporation paid each Y Corporation (target) stockholder 0.75 shares of X stock in exchange for each share of Y stock, the exchange ratio is 0.75.
Related terms

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • exchange ratio — The number of new shares in an acquiring firm that are given for each outstanding share of an acquired firm. Bloomberg Financial Dictionary …   Financial and business terms

  • Cost-exchange ratio — In anti ballistic missile defence the cost exchange ratio is the ratio of the incremental cost to the aggressor of getting one additional warhead through the defence screen, divided by the incremental cost to the defender of offsetting the… …   Wikipedia

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  • exchange — To barter; to swap. To part with, give or transfer for an equivalent. Kessler v. United States, C.C.A.Pa., 124 F.2d 152, 154. To transfer goods or services for something of equal value. Rosenberg v. State, 12 Md.App. 20, 276 A.2d 708, 711. Act of …   Black's law dictionary

  • exchange — To barter; to swap. To part with, give or transfer for an equivalent. Kessler v. United States, C.C.A.Pa., 124 F.2d 152, 154. To transfer goods or services for something of equal value. Rosenberg v. State, 12 Md.App. 20, 276 A.2d 708, 711. Act of …   Black's law dictionary

  • exchange rate — exchange′ rate n. ban bus the ratio at which a unit of the currency of one country can be exchanged for that of another country • Etymology: 1895–1900 …   From formal English to slang

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