A merger is when one firm separates to become two.
A merger is when two firms combine and form a new legal entity.
A merger is when a firm changes its title.
Contributions are automatically rolled over into the ESPP of the current company.
The offering and purchase periods are cut off early, and just before the closing of the deal, a purchase is made.
None of these.
Economies of scope from applying existing resources to new uses, at little additional cost.
Revenue and marketing synergies from new, enhanced, or more efficient distribution.
Economies of scale effects from organizational learning. d) Economies of scale from doing away with duplication of fund.
Economies of scale from doing away with duplication of function between the two firms.
The acquisition of critical mass.
The acquisition of monopoly.
If the options are still preserved after the deal, then there is no tax consequence, but if they would be cashed out directly to you, the payment has to be taxed as ordinary income.
If the options are still preserved after the deal, then there would be no tax consequence, but if they have been cashed out directly to you, then the payment has to be taxed as capital gain.
You would pay taxes on the full value of the options, both unvested and vested, as decided by a standard option-valuation model.
Target company equity.
Target company asset.
Target company liabilities.
Target company shares price premium.
For better brand recognition.
To grow in size and bounce their rivals.
Because of increasing competition.
Can be changed into restricted stock units or stock appreciation rights. It depends on the terms of the stock plan.
They can be occurred earlier to align their grant price with the grant price of the acquirer’s options.
According to an exchange ratio, they can be rolled over into options in the acquirer.
It is a type of joint venture.
It is an acquisition in which a large acquirer has leverage through bargaining power over a small target.
It is an acquisition that is funded from a relatively large amount of debt.
It is an acquisition that is funded from a relatively low amount of debt.