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sweetyamz

05/27/10 12:39 PM

#6794 RE: burtonjay21 #6792

Reverse Merger:


Another type of acquisition is a reverse merger, a deal that enables a private company to get publicly-listed in a relatively short time period. A reverse merger occurs when a private company that has strong prospects and is eager to raise financing buys a publicly-listed shell company, usually one with no business and limited assets. The private company reverse merges into the public company, and together they become an entirely new public corporation with tradable shares.



From investopedia. Linky below

http://www.investopedia.com/university/mergers/mergers1.asp" rel="nofollow" target="_blank" >http://www.investopedia.com/university/mergers/mergers1.asp