Definition for : Contribution of shares

An investor (a legal entity or an individual) exchanges its shares of company B for the shares of company A. In this case, companies A and B continue to exist, with B becoming a Subsidiary of A and the Shareholders of B becoming Shareholders of A. Contribution of shares is an All-share transaction. For listed companies (see Listed security), contribution of shares most commonly takes place in the form of a Share exchange offer.
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