Selling stockholders who are offered cash or another company's stock in a merger may be willing to part with the shares they hold because

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Selling stockholders who are offered cash or another company's stock in a merger may be willing to part with the shares they hold because the offered shares may be more marketable, the price they are offered for their shares may be above market value, and they can attain a greater degree of diversification as a result. All three options are possible reasons for selling the stock.

Selling Stockholders Who Are Offered Cash or Another Company's Stock