If you were the shareholder in a firm that became the target of an acquisition bid,which method of payment would stock market evidence suggest signals a better deal?

Question

Quizplus · Accepted Answer

Cash for stock is generally seen as a positive signal in acquisitions because it often indicates the buyer's confidence in the value of the acquisition. Paying in cash can also provide immediate and certain value to the shareholders of the target company, as opposed to stock swaps or mixtures, which may carry more risk and uncertainty regarding future stock performance.

If You Were the Shareholder in a Firm That Became