A merger occurs when two firms, usually equal in size decide to continue business as a single firm rather than being owned and operate as separate entities. In order for a merger to happen, both companies should surrender their stocks so that a new company can be formed and new stock can be issued.

In an acquisition, one company will purchase the other. In an acquisition, the company that acquires the target company will be entitled to target company's all the assets, PROPERTIES, equipment, OFFICES, patents, trademarks, ETC. The acquirer will EITHER pay in CASH to acquire the firm or provide shares in the acquirer's firm as compensation. 

A merger occurs when two firms, usually equal in size decide to continue business as a single firm rather than being owned and operate as separate entities. In order for a merger to happen, both companies should surrender their stocks so that a new company can be formed and new stock can be issued.

In an acquisition, one company will purchase the other. In an acquisition, the company that acquires the target company will be entitled to target company's all the assets, properties, equipment, offices, patents, trademarks, etc. The acquirer will either pay in cash to acquire the firm or provide shares in the acquirer's firm as compensation.