When Purchasers Are Willing to Pay a Premium for a Block

question 66

True/False

When purchasers are willing to pay a premium for a block of shares that conveys control,almost all courts today require the controlling shareholders to turn over this control premium to the corporation's treasury.

---

Definitions:

Negative Correlation

An association between two variables characterized by the increase of one and the decrease of the other.

Nondirectional Correlation

A type of correlation that indicates a statistical relationship between two variables without specifying whether the relationship is positive or negative.

Negative Correlation

A connection between two variables where as one variable rises, the other falls.

Direct Correlation

A relationship between two variables where they move in the same direction.