Need help in understanding/logic, in shares question

[krisshp 1]

Hello, could someone please help me to clarify and understand this

I don't Understand or get the logic of this

1) X purchases 20 000 share in Y by issuing 1 share in X for every 2 purchased in Y

2) X purchases 20 000 share in Y by issuing 1 share in X for every 5 purchased in Y


The Market value = $5 per share
and Nominal value =$ 2 per share

I just don't understand what exactly it MEANS..

"X purchases 20 000 share in Y - Yes I get this - X is a company and has purchased 20k shares in Y

by issuing 1 share in X for every 5 purchased in Y << THIS CONFUSES ME !!!! please explain this, step by step and slowly! my head goes empty


Thank You very much

 

[kirby]

If that garbage is coming from an accounting class, I'd find another school.
Anyway,
what they are dimly trying to say is:
X wants to get shares of Y. X and Y agree that for every X share given to Y, Y will give X 2 shares of Y. X agrees to get 20,000 Y shares for 10,000 X shares
and
X wants to get shares of Y. X and Y agree that for every X share given to Y, Y will give X 5 shares of Y. X agrees to get 20,000 Y shares for 4,000 X shares.