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What I want to do in this video is try to understand how one company can buy another company or could merge it with another company by using its stock. So we have a situation here, where Company A is acquiring Company B for $60,000,000 in As shares and what well see is, its not going to exactly be $60,000,000. Itll depend on where Company As shares trade. Right now, theyre trading at $30 a share. So in order to make this transaction happen in As shares, what would happen is, is that A says, Look, I need to raise the equivalent of $60,000,000 in shares. or I need to create the equivalent of $60,000,000 in shares. If each of my shares right now on the market are worth $30 a share, then I can do that by creating or issuing 2,000,000 shares. So Company A here is going to create another 2,000,000 shares. Theyre going to create another 2,000,000 shares and if they wanted to do it as a cash transaction, they could take these shares and sell them into the market, do a se