stock mergers?

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when 2 companys merge you get stock in the new co. plus they gave cash. How do you figure the basis of the cash?

2007-03-06 07:30:09 · 2 answers · asked by ktaxes 1 in Business & Finance ➔ Investing

Not all mergers involve cash. It is specified in the contract and different for every deal.

2007-03-06 07:47:08 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋

The company that bought the other company determines the rate of the stock swap. 2 for 1, for example.

2007-03-06 15:34:51 · answer #2 · answered by j s 4 · 0⤊ 0⤋