Exchange Ratio | Practical Law

Exchange Ratio | Practical Law

Exchange Ratio

Exchange Ratio

Practical Law Glossary Item 0-383-2184 (Approx. 2 pages)

Glossary

Exchange Ratio

In a merger where all or a portion of the consideration consists of acquiror stock, the number of shares of the acquiring company exchanged for one target company share. For example, if Acquiror paid each Target company stockholder 0.75 shares of Acquiror stock in exchange for each share of Target stock, the exchange ratio is 0.75.