What type of merger would occur if Microsoft sought to buy all stock in Apple?

A horizontal merger occurs when two companies in the same industry and at the same stage of production combine their operations. In the scenario described, Microsoft attempting to buy all stock in Apple signifies that both companies operate within the technology and software sector, competing in similar markets such as personal computing and mobile devices.

A horizontal merger typically aims to increase market share, reduce competition, and achieve greater economies of scale. The merger can lead to a larger combined entity that has more resources for research, development, and marketing, ultimately benefiting shareholders and consumers through more innovative products and services.

In this case, since both Microsoft and Apple are direct competitors in overlapping markets, the merger classification is indeed horizontal. This aligns with the general understanding of horizontal mergers, which facilitates an understanding of market dynamics in various sectors.