If Beta Corporation buys all the existing common shares of Ajax Corporation, which has no preferred shares, in exchange for a new class of Ajax Corporation preferred shares, the transaction is a(n):
A)merger.
B)acquisition.
C)compulsory share exchange.
D)consolidation.

Question

Quizplus · Accepted Answer

This transaction is a compulsory share exchange, where existing common shares are exchanged for a new class of preferred shares.

If Beta Corporation Buys All the Existing Common Shares of Ajax