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stock merger

In the event of a share The portion of registered capital of a private or public limited company
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stock
merger (or: stock swap) a legal person transfers the share The portion of registered capital of a private or public limited company
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shares
to another limited and in exchange receives shares of this limited back. Effectively it is a share The portion of registered capital of a private or public limited company
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share
-for-share merger.

A stock merger is often used to create a holding structure to enjoy tax advantages.

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