What Role Do Hedge Funds Take When They Speculate on Merger

question 11

Multiple Choice

What role do hedge funds take when they speculate on merger activity by buying stock of firms that are "in play"?

• A)Speculation causes an increased chance of antitrust lawsuits.
• B)Hedge funds specialize in taking on the risk that the deal will fall through and allow risk-averse investors to cash out.
• C)Hedge funds help reduce the cost of the merger to an acquirer.
• D)Hedge funds enable international mergers.

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Definitions:

Violence

The use of physical force with the intention to harm someone or something.

Emotional

Related to feelings or how one responds to those feelings, involving mood, temperament, and disposition.

Verbal

Pertaining to words, either spoken or written, used in communication to convey messages and express thoughts.

Sexual Violence

Any sexual act or attempt to obtain a sexual act by violence or coercion, acts to traffic someone or acts directed against a person's sexuality, regardless of the relationship to the victim.