Term
Exchangeable share
A share issued by a subsidiary of a company, often in cross-border deals so the original owners can defer taxes, that can be swapped for a common share of the parent, usually one for one. Economically it counts as a common share, so it belongs in the share count.
In pesos: If a company has 100 common shares and 5 exchangeable ones, the business is split into 105 pieces: dividing its value by 100 would overstate each share by 5%.
Where to go deeper
2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.