What is typically exchanged during the acquisition of shares?

The transaction involved in the acquisition of shares typically involves the exchange of cash or shares of equity. This means that when a company seeks to acquire shares from existing shareholders, they can offer cash as payment, or they can provide shares of their own company in exchange for the target's shares. This dual possibility facilitates a versatile approach to acquisitions, accommodating various financial strategies and preferences from both the acquiring and target companies.

Using cash as part of the transaction is straightforward, providing immediate value to sellers, while offering shares of equity can be advantageous by aligning interests or preserving cash for other investments. This flexibility in how the transaction can be structured is why the choice indicating both cash and shares of equity is considered correct in the context of share acquisitions.