Perez Co. acquired Roo Co. in a business combination. Perez issued new shares to Roo's shareholders in exchange for their outstanding shares. What type of share exchange is this?

A) Direct exchange
B) Indirect exchange
C) Hostile takeover
D) Reverse takeover

Share Exchange

A transaction where shares of one company are exchanged for shares of another, typically as part of mergers or acquisitions.

Hostile Takeover

A type of acquisition where one company attempts to take control of another without the consent or cooperation of the target company's management or board.