Under the purchase-of-stock method,the acquired bank ceases to exist as a separate corporation.

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Under the purchase-of-stock method, the acquiring bank purchases all the stocks of the acquired bank, and the acquired bank ceases to exist as a separate corporation. The acquiring bank assumes all the assets and liabilities of the acquired bank, and the stocks of the acquired bank are no longer traded on the stock exchange.

Under the Purchase-Of-Stock Method,the Acquired Bank Ceases to Exist as a Separate