A Plan of Merger with Conversion of Outstanding Shares by Payment in Cash to Shareholders of Merging Corporation is an agreement between two companies whereby one company, the merging corporation, acquires the assets and liabilities of another company, the merging entity, in exchange for cash payments to the shareholders of the merging corporation. This type of merger is a common way for a large company to acquire a smaller company in order to increase its market share and expand its operations. There are two types of Plan of Merger with Conversion of Outstanding Shares by Payment in Cash to Shareholders of Merging Corporation. The first type is known as a stock-for-cash merger, which is an exchange of stock in the merging corporation for cash payments to its shareholders. The second type is known as a cash-for-stocks merger, which is an exchange of cash to the shareholders of the merging corporation in exchange for their shares. In both cases, the shareholders of the merging corporation receive payments in cash in exchange for their shares, and the merging corporation absorbs the assets and liabilities of the merging entity. Once the merger is complete, the merging corporation is the sole owner of the merged company and is responsible for its operations.