What kind of transactions typically involve issuing stock as a payment?

Issuing stock as a payment is typically associated with acquisitions in strong markets. In such environments, companies often see their stock prices performing well, which makes equity a more appealing form of payment during acquisitions. When a company's stock is highly valued, using stock as currency allows the acquiring company to leverage its favorable market position.

In strong markets, companies are more willing to utilize their equity as a payment method because they can maintain their cash reserves for other purposes, such as investment or operational expenses. Additionally, sellers may be more receptive to receiving stock when the company is perceived to be on solid ground and the equity might appreciate further.

While other options might contain elements that could be relevant in specific scenarios, such as acquisitions taking place in weak markets potentially preferring cash to avoid dilution, the overarching trend is that strong markets facilitate stock issuance as a viable transaction method for both buyers and sellers.