Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Retail Ventures (NYSE: RVI) are up 15% today after an announcement was made that the company would merge with its only operating investment, DSW (NYSE: DSW).

So what: In a move that has sent both stocks soaring, each share of Retail Ventures will be traded for 0.435 shares of DSW. The stock swap does not include any cash payment in the transfer, and both companies' shareholders still own essentially the same thing.

Now what: Management said the move will allow the company to use $350 million in net operating losses and other tax credits. Besides the tax benefits, this move is a little like painting your house and seeing the value jump 15%. Nothing has really changed in operations, but investors have applauded the move from both sides.

Interested in more info on Retail Ventures? Add it to your watchlist.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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