What does "Mandatory -Exchange" mean in STOCKS?

Question

07/01/2008 08:51:01 MANDATORY - EXCHANGE (CFC)

07/01/2008 08:51:01 MANDATORY - EXCHANGE (BAC)

???? im lookign at my dad's stocks transactions

Answer 1

The following paragraph explains what happened:

"Shareholders of Countrywide Financial Corporation ("CFC/YJD") voted on

Wednesday, June 25, 2008, and approved a proposed Merger between CFC and Red

Oak Merger Corporation, a wholly owned subsidiary of Bank of America

Corporation ("BAC/WBA"). Pursuant to the terms of the Merger, each share of

CFC Common Stock outstanding immediately prior to the consummation of the

Merger will be converted into the right to receive 0.1822 of a share of BAC

Common Stock. The Merger will become effective prior to the opening of

business on Tuesday, July 1, 2008."

Shares of CFC had to be exchanged for shares of BAC, making it a mandatory exchange.