InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
Subscribe Login/Register
S&P 500
5,221.42
(
-0.02%
)
US TECH 100
17,713.60
(
0.18%
)
Dow Jones
39,431.51
(
-0.21%
)
Brent Oil
83.21
(
1.00%
)
Bitcoin
62,826.53
(
2.24%
)
Post# of 13874
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Keep Next 10 Report Keyboard Shortcuts
Next 10 Prev Next

Psionic Trader

Send PM Follow Ignore
Followers 1398
Posts 59304
Boards Moderated 6
Alias Born 11/08/2005

Psionic Trader

Re: None

Sunday, 08/05/2007 10:44:46 AM

Sunday, August 05, 2007 10:44:46 AM

Post# of 13874
INFO: Reverse merger

Great online book (Not 100% free though)
http://tinyurl.com/2khv3t

Reverse Merger / Reverse Takeover

A reverse merger is a method by which a private company can achieve the status of being listed publically. During a reverse merger, a private company merges or 'takes over' or 'reverses' with an corporate entity that is already listed on an exchange and traded publically.

This public corporate entity is a shell because it doesn't have any assets or liabilities. A 'shell' has nothing more than a corporate infra structure in tact.


Reverse Mergers can be a stock for stock transaction, or stock for assets transaction

Stock for Stock

During a "stock for stock" transaction, stocks of the public company is issued for stocks in the private company. (Sort of like, give and take in equal amounts) The private company can become a "wholly-owned subsidiary" of the public company... or the private company can be completely assimilated by the public company.

Stock for Asset
In a stock for assets transaction, stock is issued in exchange for assets. The shell company receives the assets and gives the private company their stock.

Companies can get a new ticker and a corporate name.

investorshub.advfn.com/boards/board.asp?board_id=8793[tag]
****** Trade with T/A * F ******

[/tag] #board7516 10BaggasFactory

Public Reply Private Reply New Post
Keep Last Read
Keep Last Read Next 10 Report Keyboard Shortcuts
Next 10 Prev Next

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up