What perspective do sellers typically have in preferring cash over stock in a deal?

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Sellers typically prefer cash over stock in a deal because cash is guaranteed and less risky for them. When receiving cash, sellers know exactly what they are getting at the time of the transaction, eliminating uncertainties associated with stock performance. Stock, on the other hand, can fluctuate in value after the deal, which introduces potential risks. If sellers opt for stock, they expose themselves to market volatility, which could decrease the value of their compensation post-transaction. Hence, the preference for cash is rooted in its immediate certainty and stability, allowing sellers to secure their returns without further risk. This perspective aligns closely with the inherent value of cash as a reliable asset, reinforcing why sellers favor cash payments in transactions.

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