Whether a combination is merger or a consolidation,the rights and liabilities of the shareholders are the same.

Question

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Both in a merger and a consolidation, the shareholders' rights and liabilities remain the same. In a merger, one company acquires another company, and the acquiring company's stock replaces the target company's stock. In a consolidation, two or more companies combine to form a new corporation, and the shareholders of the original companies become shareholders of the new company. Regardless of the type of combination, the shareholders' rights and liabilities remain the same.

Whether a Combination Is Merger or a Consolidation,the Rights and Liabilities