Through a certain transaction,Corporate Properties,Inc.,acquires all of the shares of Downtown Realty Corporation for some of Corporate Properties's shares.Both Corporate Properties and Downtown Realty continue to exist.This is
A)a consolidation.
B)a share exchange.
C)a short-form merger.
D)a hold-up.

Question

Quizplus · Accepted Answer

This transaction is a share exchange, where Corporate Properties acquires all shares of Downtown Realty using some of its own shares as consideration. A consolidation would involve the dissolution of one or both companies and the creation of a new entity. A short-form merger involves the automatic merger of a subsidiary into a parent company without a shareholder vote. A hold-up is not a term relevant to this type of corporate transaction.

Through a Certain Transaction,Corporate Properties,Inc