{{distinguish|Swap rate}} In corporate finance, the '''swap ratio''' is an exchange rate of the shares of the companies that undergo a merger; see Stock swap and {{slink|Mergers and acquisitions #Stock}}.
The swap ratio determines the control that each group of shareholders of the companies shall have over the combined firm: essentially a function of the relative value of the strategic and financial results of the two companies. This ratio is thus calculated as a function of the valuation of the various assets and liabilities of the merging companies. <ref>{{Cite web|url=http://special-loans.com/dictionary.asp?t=swap_ratio|title = Swap Ratio definition - Special Loans}}</ref>
==See also== * Risk arbitrage * Stock swap * Junk bonds * Accretion (finance) * Contingent value rights
==References== {{reflist}} Category:Corporate finance Category:Mergers and acquisitions
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