Debt-Equity Swap

Business, Legal & Accounting Glossary

Definition: Debt-Equity Swap


Debt-Equity Swap


Full Definition of Debt-Equity Swap


A transaction in which a corporation exchanges existing bonds (debt) for newly issued stock (equity). For example, XYZ company can in essence cancel a portion of its debt and transfer the equivalent balance to equity. A debt-equity swap can help a company that is in financial trouble by canceling some of its outstanding debt. Other companies may take advantage of this process if the current value of their stock is high, allowing them to trade more debt for less stock.


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March 28, 2024 https://payrollheaven.com/define/debt-equity-swap/.
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, from PayrollHeaven.com website: https://payrollheaven.com/define/debt-equity-swap/

Definition Sources


Definitions for Debt-Equity Swap are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st September, 2022 | 0 Views.