All of the Following Statements Are Correct EXCEPT

question 74

Multiple Choice

All of the following statements are correct EXCEPT:

• A) immediately after the announcement of a planned acquisition, the stock price of the majority of acquiring firms declines.
• B) shareholders of acquired firms often earn above-average returns from an acquisition.
• C) the majority of acquisitions increase long-term value for the acquiring firm.
• D) shareholders of acquiring firms typically earn returns from the transaction that are close to zero.

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Definitions:

Real Estate Companies

Businesses involved in the buying, selling, management, or investment of real estate properties.

Registration

The act of recording something, such as a company's securities, with a regulatory authority to ensure compliance with applicable rules.

Securities

Financial instruments that represent ownership positions in corporations (stocks), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Forms

Documents with a prescribed format used for processing information relevant to business transactions, applications, surveys, or registrations.