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What is the impact of mergers and spin offs on shares?
Mergers and spin-offs can have various impacts on shares, depending on the specific details of the corporate actions involved. In a merger, where two companies combine to form a single entity, the impact on the shares of each company can vary depending on the terms of the merger. In most cases, shareholders of the acquired company receive shares in the new, combined entity in exchange for their old shares. The value of the new shares will depend on various factors, such as the relative valuations of the two companies, the terms of the exchange ratio, and the overall market conditions at the time of the merger.
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