The terms acquisition and takeover are often used to refer to a merger because the stock of the firm that goes out of existence is usually acquired by the continuing firm.

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kiara evans · Accepted Answer

Final Answer : True, Explanation :  This statement is true. In a merger, one company usually acquires or takes over the other company, and the stock of the acquired company is typically absorbed by the acquiring company.

The terms "acquisition" and "takeover" are often used to refer to a merger because the stock of the firm that goes out of existence is usually acquired by the continuing firm.

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