Most large mergers today use _____________ to finance the transaction.

Question

Quizplus · Accepted Answer

Most large mergers today use stock to finance the transaction. This is because issuing new shares of stock allows the acquiring company to use its own stock as currency to purchase the target company's stock. This can potentially result in a higher valuation for the combined company and allows both the acquiring company and target company's shareholders to benefit from the merger. Additionally, using stock as currency can be less risky than taking on large amounts of debt or relying on private equity funds.

Most Large Mergers Today Use _____________ to Finance the Transaction