All Cash, All Stock Offer

Filed Under » , , , ,
Dictionary Says

Definition of 'All Cash, All Stock Offer'

A proposal by one company to purchase all of another company's outstanding shares from its shareholders for cash. An all cash, all stock offer is one method by which an acquisition can be completed. In this type of offer, one way for the acquiring company to sweeten the deal and try to get uncertain shareholders to agree to a sale is to offer a premium over the price for which the shares are presently trading.

Investopedia Says

Investopedia explains 'All Cash, All Stock Offer'

The downside of an all cash, all stock offer for shareholders is that their sale of shares is a taxable event. Even if they sell their shares to the acquirer at a premium, taxes may take a significant chunk of their earnings if the sale price is higher than the price investors paid when they initially purchased their shares.

Another acquisition method is for the acquiring company to offer shareholders an exchange of all the shares they hold in the target company for shares in the acquiring company. These stock-for-stock transactions are not taxable. The acquiring firm could also offer a combination of cash and shares.

Related Definitions

Search results for

'All Cash, All Stock Offer'

  • All Weather Investing With ETFs

    http://www.investopedia.com/articles/exchangetradedfunds/11/all-weather-investing-with-etfs.asp
    ... may not offer enough income for many investors who are worried about stock market
    volatility. all weather investing looks beyond the typical stock/bond/cash ...

  • Forex Videos | Investopedia

    http://www.investopedia.com/video/forex
    ... When trading in forex, all currencies are quoted in pairs. ... Cash in the bank is what
    every company strives ... the basic metrics used to evaluate a company's stock. ...

  • Berkshire Hathaway Makes An Unusual Bid For Transatlantic

    http://stocks.investopedia.com/stock-analysis/2011/Berkshire-Hathaway-Makes-An-Unusual-Bid-For-Transatlantic-TRH-BRK.A-AWH-VR-AIG-AON-MMC0809.aspx
    ... though, there was a large equity component to the offer, and the declines in the
    stock prices of ... the largest (and would be guaranteed as an all-cash bid). ...

  • Taking Stock Of Discounted Cash Flow

    http://www.investopedia.com/articles/03/011403.asp
    ... If the companies used as comparisons are all over-priced, the investor can ... Don't
    base your decision to buy a stock solely on discounted cash flow analysis. ...

  • All About EVA

    http://www.investopedia.com/articles/fundamental/03/031203.asp
    ... profits rarely reflect the amount of cash left at ... close relationship between rising
    EVA and stock price performance. ... Best of all, EVA gives analysts and anyone ...

  • Should You Invest Your Entire Portfolio In Stocks?

    http://www.investopedia.com/articles/stocks/07/100_equities.asp
    ... do investors lose money when the stock market crashes ... equities will outperform bonds
    and cash over most ... All Weather investment strategies can shield investors ...

  • How To Choose The Best Stock Valuation Method

    http://www.investopedia.com/articles/fundamental-analysis/11/choosing-valuation-methods.asp
    ... price-to-sales (P/S), price-to-cash flow (P/CF ... because you need the price of the
    stock and you ... All Weather investment strategies can shield investors during the ...

  • Oracle Expands Its Cloud Business … RightNow

    http://stocks.investopedia.com/stock-analysis/2011/Oracle-Expands-Its-Cloud-Business--RightNow-ORCL-RNOW-SAP-CRM-N-SFSF-LPSN1027.aspx
    ... for the valuation of these companies - after all, companies over ... deal is a taxable
    shares-for-cash transaction ... Use the Investopedia Stock Simulator to trade the ...

  • Stock School: Student-Managed Investment Plans

    http://www.investopedia.com/articles/professionaleducation/10/student-managed-investment.asp
    ... of $23.7 million split between a growth stock fund and ... whole, the funds maintained
    a lot of their cash. Not all funds get their money from their university's ...

  • Store Your Cash In Public Storage REITs

    http://stocks.investopedia.com/stock-analysis/2011/Store-Your-Cash-In-Public-Storage-REITs-PSA-EXR-SSS-CUBE-AVB-PSB-ICF-EBAY-REZ1117.aspx
    ... the sector is small enough to buy all the major ... different properties this year adding
    to its cash flows ... Use the Investopedia Stock Simulator to trade the stocks ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links