In terms of merger s and acquisition s the various numbers of shares the acquiring firm distributes is for each validly and truly authenticated share of the acquired company. Merger is that form is business union between two or more companies having the same or different ways of operations and sharing a common agenda the various exchange ratios is calculated according to the various agreements policies between the merger and theacquisition agreement. There might be factors too in deciding the ratio and they are the relative values for of each company before closing of the merger and acquisition. Or any tax advantage which goes for both the parties and applicable regulatory laws. Just to identify the firms with several such incentives we focus on larger acquisitions which use the stock of the acquirer as the payment. If an acquirer in such fixed exchange ratio stock merger raises its stock price during the various merger negotiations it does a different move by offering the few of its shares for each target share and to achieve the same expected takeover price. But when it comes to Floating exchange ratio or the cash financed merger s the various acquirers do not have the same incentives as the quote for the takeover price is not in shares rather it is in currency. Now this difference or variation in the incentives offers a genuinely proper structure about the firms managing their media houses. While defining it yet again a floating exchange rate or as it is commonly called a fluctuating exchange rate is a sort of theexchange rate process where the value of the currency is allowed for fluctuations based and dependent on foreign exchange markets. So a currency which uses this rate is also known as floating currency. When merger happens between such companies it is commonly called Floating exchange ratio merger. There are couples of those economists who trust that in most of the situations the floating exchange rate s are given more preferences to the fixed exchange rate s. The floating exchange rates adjust themselves and thus they hamper the impact of any sort of shocks and foreign deals happening. In this sort of ratios the merger s are often stable and free from any sort of market shocks. This is owing to the fact it is self adjustable according to the changes in the market forces. In analyzing a deal we also analyze the distribution of fixed and floating exchange ratio s which is relative to the type of stocks offered. Given that cash & stock and choice deals involve target shareholder receiving, or having the option to receive cash, it is not surprising that a significantly higher percentage of these deals would involving a floating exchange ratio where the dollar value of stock to be received is specified from the beginning of the transaction so that target shareholders can easily compare that to the cash component being offered. A free Floating exchange rate also increases the foreign exchange volatility. There are also several economists who think that this could have caused serious problems especially in those countries who are developing.

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