In the United States, the Premium That an Investor Needed

question 27

Multiple Choice

In the United States, the premium that an investor needed to pay to gain voting control was what percentage of firm value?

• A)29 percent.
• B)36 percent.
• C)2 percent.
• D)32 percent.

---

Definitions:

Due Diligence Defense

A legal defense in which the accused shows that they took all possible precautions and conducted thorough research or investigation before making a decision.

Registration Statement

A set of documents submitted to a regulatory authority, detailing the specifics of a security offering to the public.

Prospectus

An official document that a company files with the SEC that provides details about an investment offering for sale to the public.

Short-Swing Profits

Profits earned by corporate insiders through buying and selling their own company's stock within a short period, which are subject to regulatory scrutiny and specific rules.