ELI5: Explain Like I'm 5

stock swaps

Stock swaps are when two companies trade stocks with each other. This means that one company will give stock from their company to the other company, and the other company will give stock from their own company in exchange. This can be a good way for companies to get stock without spending money, and to help them grow. For example, if Company A and Company B both want to own more of each other’s stock, they can do a stock swap. Company A will give some of their stock to Company B, and Company B will give some of their stock to Company A in exchange. This way, each company will own more of the other company’s stock without spending money on it.