Statutory absorption
A form of reorganisation in which one company is absorbed into another and ceases to exist, its holders receiving shares in the acquirer.
How to read the number
Unlike a merger, no new entity is created: the acquirer keeps its ticker and its history, while the absorbed company's shares leave circulation.
When the metric lies
The last day of trading in the absorbed share and the day the new shares are credited do not coincide; in between, the position exists and cannot be sold.
Also known as: absorption