While going through B/s of company for study purpose – I saw a line item Unexchanged Shares in I/s and in B/S (liability side). May anyone explain me what are Unexchanged Shares? I googled it but was not able to get a proper explanation for it.
Hey @Kushyb , it seems to be a minority case where M&A event has occurred in a target company (for shares in part or whole), and the shareholder of the acquired company has not exchanged its shareholding with the newly issues shares.
In the Acquirer’s B/S it would then have a line item called unexchanged shares to account for these.